MICROCAPITAL BRIEF: Mongolia’s Khan Bank Launches Drive-through ATMs, Increases Number of Correspondent Banks

Khan Bank, a Mongolian provider of microfinance and other services, recently installed three drive-through automated teller machines in the city of Ulaanbaatar. Khan Bank plans to install more ATMs around the city within an unspecified timeframe [1].

Khan Bank also recently established correspondent relationships, in which a financial institution provides services on behalf of another, with Bao Shang Bank of China, Deutsche Bank of Germany, Mizuho Corporate Bank of Japan and National Bank of Canada. Khan Bank also recently signed agreements with Agricultural Bank of China, Chiba Bank of Japan, Industrial and Commercial Bank of China (ICBC) and La Caixa Bank of Italy in an effort to expand customer access to short-term trade finance facilities. With these developments, Khan Bank has grown its sphere of partnerships to include about 60 banks in 16 countries [2].

For the year 2011, Khan Bank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 1.6 billion, a gross loan portfolio of USD 1 billion, deposits of USD 1.3 billion, return on assets (ROA) of 3.91 percent, return on equity (ROE) of 40.9 percent, approximately 300,000 active borrowers and 1.9 million depositors. Khan Bank classifies 51 to 60 percent of its operations as microfinance.

For the year 2011, Agricultural Bank of China reported total assets of CNY 11.7 trillion (USD 1.87 trillion), and ICBC reported total assets of CNY 15 trillion (USD 2.4 trillion). For the year 2010, Bao Shang Bank reported total assets of CNY 115 billion (USD 18.5 billion). For the year 2012, Chiba Bank reported total assets of JPY 11 trillion (USD 117 billion), Deutsche Bank reported total assets of EUR 2.01 trillion (USD 2.06 trillion), Mizuho Financial Group reported total assets of JPY 166 trillion (USD 1.78 trillion) and National Bank of Canada reported total assets of 175 billion (USD 170 billion). For the year 2011, La Caixa reported total assets of EUR 270 billion (USD 356 billion).

By Brendan Millan, Research Associate

About Khan Bank
Established in 1991, Khan Bank is a Mongolian provider of microfinance and other services through 512 branches in the country. For the year 2011, Khan Bank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 1.6 billion, a gross loan portfolio of USD 1 billion, deposits of USD 1.3 billion, return on assets (ROA) of 3.91 percent, return on equity (ROE) of 40.9 percent, approximately 300,000 active borrowers and 1.9 million depositors. Khan Bank classifies 51 to 60 percent of its operations as microfinance.

Sources and Additional Resources:

[1] Khan Bank: “Press Release: Khan Bank Introduces Drive-through ATM Services for the First Time”, https://www.khanbank.com/en/52/News.html?n=248

[2] Khan Bank: “Press Release: Khan Bank Increases the Number of Its Correspondent Banks”, https://www.khanbank.com/en/52/News.html?n=249

MicroCapital.org story, June 22, 2011, “International Finance Corporation (IFC) to Loan $20m to Khan Bank of Mongolia to Support Small and Medium-Sized Businesses”, http://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-loan-20m-to-khan-bank-of-mongolia-to-support-small-and-medium-sized-businesses/

MicroCapital.org story, February 11, 2011, “Belgian Incofin Loans $1.5m to TenGer Financial Group of Mongolia”, http://www.microcapital.org/microcapital-brief-belgian-incofin-loans-1-5m-to-tenger-financial-group-of-mongolia-2/

MicroCapital.org story, February 8, 2010, “responsAbility Social Investments Makes Loans Totaling $12.5m to Belarusian Bank for Small Business (BBSB) of Belarus, Khan Bank of Mongolia, XacBank of Mongolia”, http://www.microcapital.org/microcapital-brief-responsability-social-investments-makes-loans-totaling-12-5m-to-belarusian-bank-for-small-business-bbsb-of-belarus-khan-bank-of-mongolia-xacbank-of-mongolia/

MicroCapital’s Universe Profile: Khan Bank, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Khan+Bank

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