The Bank of Mongolia may issue a collateral loan to the bank as part of its role as a lender of last resort to support quick payment ability of banks. In accordance with the revised Central Bank/Mongolbank/ Law and international standards, the "Regulation of Collateralized Loan" were approved by Order No. A-174 of the President of the Central Bank of Mongolia dated June 15, 2018. According to the relevant regulations, if there is a problem with the bank's ability to quickly execute payments, the Bank of Mongolia may provide financing to the bank for a period of up to 90 days (extendable once). Additionally, the collateral loan interest rate is equal to the highest interest rate offered by the Bank of Mongolia plus five percentage points. Collateral loans are fully secured by collateral assets included in the collateral list issued by the Bank of Mongolia.
