Mongolia Financial Sector Assessment : Housing Finance
As the Mongolian mortgage market grows rapidly, and the Government of Mongolia (GoM) pursues an ambitious social housing agenda, there is an urgent need for a holistic sector approach. The following three key areas require attention from policymake...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/865831468277491376/Mongolia-Financial-Sector-Assessment-Program-development-module-housing-finance-technical-note http://hdl.handle.net/10986/26815 |
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okr-10986-26815 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ASSET-LIABILITY MANAGEMENT AUCTION BALANCE SHEET BALANCE SHEETS BANK CREDIT BANK LENDING BANK REGULATIONS BANKING CRISIS BANKING REGULATION BANKING SECTOR BANKING SYSTEM BENEFICIARIES BOND BOND INSTRUMENTS BONDS BORROWER BORROWER FINANCING BROKERAGE CADASTRE CAPACITY CONSTRAINTS CAPITAL ADEQUACY CAPITAL ALLOCATION CAPITAL BASE CAPITAL FLOWS CAPITAL FUND CAPITAL GAINS CAPITAL MARKET CAPITAL MARKETS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPITALIZATION CASH FLOWS CENTRAL BANK CENTRAL BANKS CENTRAL SECURITIES DEPOSITORY COLLATERAL COMMERCIAL BANK COMMERCIAL BANK LOANS COMMERCIAL BANKS COMMERCIAL MORTGAGE CONSUMER CREDIT CONSUMER PROTECTION CORPORATE DEBT CORPORATE GOVERNANCE CREDIT AVAILABILITY CREDIT CARDS CREDIT COOPERATIVE CREDIT ENHANCEMENTS CREDIT GROWTH CREDIT GUARANTEES CREDIT INFORMATION CREDIT INFORMATION BUREAU CREDIT RATING CREDIT RATIONING CREDIT RISK DEBENTURES DEBT DEBT FINANCING DEBT INSTRUMENTS DEBT ISSUES DEBT OUTSTANDING DEBT SERVICE DEFAULT COSTS DEPOSIT INSURANCE DEVELOPMENT BANK DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DURATION MATCHING EQUITY CAPITAL EQUITY STAKE EXCHANGE RATE EXPENDITURE EXPENDITURES FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL STABILITY FINANCIAL SYSTEM FORECLOSURE FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN INVESTMENT FUTURE LOAN GLOBAL FINANCIAL STABILITY GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROUP LOAN HOLDING HOUSING FINANCE IMMOVABLE PROPERTY IMPLICIT SUBSIDIES INDEBTEDNESS INFLATION INFORMATION TECHNOLOGY INITIAL PUBLIC OFFERING INSTITUTIONAL CAPACITY INSTITUTIONAL INVESTORS INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCIAL INSTITUTIONS INVESTMENT FUND INVESTMENT PURPOSES INVESTMENT VEHICLES INVESTOR BASE INVESTOR CONFIDENCE IPO ISSUANCE LEGAL FRAMEWORK LEGISLATIVE FRAMEWORK LENDER LENDERS LEVEL PLAYING FIELD LIABILITY LIABILITY BASE LIEN LIQUIDITY LIQUIDITY RATIOS LIQUIDITY RISK LLC LOAN AMOUNT LOAN AMOUNTS LOAN CLASSIFICATION LOAN GUARANTEE LOAN PORTFOLIO LOAN PRODUCTS LOAN REPAYMENTS LOAN TERM LOCAL CURRENCY LONG-TERM LIABILITIES MARKET ACCESS MARKET DATA MARKET DEVELOPMENT MARKET DISTORTION MARKET DISTORTIONS MARKET INSTRUMENTS MARKET INTEREST RATES MARKET INTERMEDIARIES MARKET INTERMEDIARY MARKET LIQUIDITY MARKET PARTICIPANT MARKET PARTICIPANTS MARKET PRICES MARKET SIZE MARKET VALUE MATURITIES MATURITY MICRO LOANS MICROFINANCE MONETARY FUND MORAL SUASION MORTGAGE MORTGAGE BONDS MORTGAGE FINANCE MORTGAGE INTEREST MORTGAGE LOAN MORTGAGE LOANS MORTGAGE MARKET MORTGAGE MARKETS MORTGAGE-BACKED SECURITIES MORTGAGES NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPEN MARKET OUTSTANDING AMOUNTS OUTSTANDING LOAN PARTIAL CREDIT PAYMENT OF PRINCIPAL PLEDGES POLICY RESPONSES PORTFOLIO PORTFOLIO ALLOCATION PORTFOLIO OF MORTGAGE PORTFOLIO PERFORMANCE PORTFOLIOS PREPAYMENTS PRICE DISCOVERY PRIVATE BANKS PRIVATE CAPITAL PRIVATE EQUITY PRIVATE LENDERS PROBABILITY OF DEFAULT PROPERTY RIGHTS PROVISION OF CREDIT PRUDENTIAL REGULATION PRUDENTIAL SUPERVISION RATES OF RETURN REAL ESTATE INVESTMENT REAL PROPERTY REGISTRY SYSTEMS REGULATORY AUTHORITIES REGULATORY FRAMEWORK REMITTANCES REPO REPOS RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RESIDENTIAL MORTGAGE RISK MANAGEMENT RISK PROFILE SECURITIES SECURITIES MARKET SECURITIES MARKET LAW SHARE OF INVESTMENT SHAREHOLDER SHAREHOLDERS SOVEREIGN BONDS SOVEREIGN GUARANTEE SOVEREIGN GUARANTEES STAMP DUTY STOCK EXCHANGE SWAP TAX TAX EXEMPTION TAX TREATMENT TERM DEPOSIT TERM DEPOSITS TRADE DATE TRADING TRANSACTION TRANSPARENCY UNSECURED DEBT VALUATION |
| spellingShingle |
ACCOUNTING ASSET-LIABILITY MANAGEMENT AUCTION BALANCE SHEET BALANCE SHEETS BANK CREDIT BANK LENDING BANK REGULATIONS BANKING CRISIS BANKING REGULATION BANKING SECTOR BANKING SYSTEM BENEFICIARIES BOND BOND INSTRUMENTS BONDS BORROWER BORROWER FINANCING BROKERAGE CADASTRE CAPACITY CONSTRAINTS CAPITAL ADEQUACY CAPITAL ALLOCATION CAPITAL BASE CAPITAL FLOWS CAPITAL FUND CAPITAL GAINS CAPITAL MARKET CAPITAL MARKETS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPITALIZATION CASH FLOWS CENTRAL BANK CENTRAL BANKS CENTRAL SECURITIES DEPOSITORY COLLATERAL COMMERCIAL BANK COMMERCIAL BANK LOANS COMMERCIAL BANKS COMMERCIAL MORTGAGE CONSUMER CREDIT CONSUMER PROTECTION CORPORATE DEBT CORPORATE GOVERNANCE CREDIT AVAILABILITY CREDIT CARDS CREDIT COOPERATIVE CREDIT ENHANCEMENTS CREDIT GROWTH CREDIT GUARANTEES CREDIT INFORMATION CREDIT INFORMATION BUREAU CREDIT RATING CREDIT RATIONING CREDIT RISK DEBENTURES DEBT DEBT FINANCING DEBT INSTRUMENTS DEBT ISSUES DEBT OUTSTANDING DEBT SERVICE DEFAULT COSTS DEPOSIT INSURANCE DEVELOPMENT BANK DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DURATION MATCHING EQUITY CAPITAL EQUITY STAKE EXCHANGE RATE EXPENDITURE EXPENDITURES FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL STABILITY FINANCIAL SYSTEM FORECLOSURE FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN INVESTMENT FUTURE LOAN GLOBAL FINANCIAL STABILITY GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROUP LOAN HOLDING HOUSING FINANCE IMMOVABLE PROPERTY IMPLICIT SUBSIDIES INDEBTEDNESS INFLATION INFORMATION TECHNOLOGY INITIAL PUBLIC OFFERING INSTITUTIONAL CAPACITY INSTITUTIONAL INVESTORS INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCIAL INSTITUTIONS INVESTMENT FUND INVESTMENT PURPOSES INVESTMENT VEHICLES INVESTOR BASE INVESTOR CONFIDENCE IPO ISSUANCE LEGAL FRAMEWORK LEGISLATIVE FRAMEWORK LENDER LENDERS LEVEL PLAYING FIELD LIABILITY LIABILITY BASE LIEN LIQUIDITY LIQUIDITY RATIOS LIQUIDITY RISK LLC LOAN AMOUNT LOAN AMOUNTS LOAN CLASSIFICATION LOAN GUARANTEE LOAN PORTFOLIO LOAN PRODUCTS LOAN REPAYMENTS LOAN TERM LOCAL CURRENCY LONG-TERM LIABILITIES MARKET ACCESS MARKET DATA MARKET DEVELOPMENT MARKET DISTORTION MARKET DISTORTIONS MARKET INSTRUMENTS MARKET INTEREST RATES MARKET INTERMEDIARIES MARKET INTERMEDIARY MARKET LIQUIDITY MARKET PARTICIPANT MARKET PARTICIPANTS MARKET PRICES MARKET SIZE MARKET VALUE MATURITIES MATURITY MICRO LOANS MICROFINANCE MONETARY FUND MORAL SUASION MORTGAGE MORTGAGE BONDS MORTGAGE FINANCE MORTGAGE INTEREST MORTGAGE LOAN MORTGAGE LOANS MORTGAGE MARKET MORTGAGE MARKETS MORTGAGE-BACKED SECURITIES MORTGAGES NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPEN MARKET OUTSTANDING AMOUNTS OUTSTANDING LOAN PARTIAL CREDIT PAYMENT OF PRINCIPAL PLEDGES POLICY RESPONSES PORTFOLIO PORTFOLIO ALLOCATION PORTFOLIO OF MORTGAGE PORTFOLIO PERFORMANCE PORTFOLIOS PREPAYMENTS PRICE DISCOVERY PRIVATE BANKS PRIVATE CAPITAL PRIVATE EQUITY PRIVATE LENDERS PROBABILITY OF DEFAULT PROPERTY RIGHTS PROVISION OF CREDIT PRUDENTIAL REGULATION PRUDENTIAL SUPERVISION RATES OF RETURN REAL ESTATE INVESTMENT REAL PROPERTY REGISTRY SYSTEMS REGULATORY AUTHORITIES REGULATORY FRAMEWORK REMITTANCES REPO REPOS RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RESIDENTIAL MORTGAGE RISK MANAGEMENT RISK PROFILE SECURITIES SECURITIES MARKET SECURITIES MARKET LAW SHARE OF INVESTMENT SHAREHOLDER SHAREHOLDERS SOVEREIGN BONDS SOVEREIGN GUARANTEE SOVEREIGN GUARANTEES STAMP DUTY STOCK EXCHANGE SWAP TAX TAX EXEMPTION TAX TREATMENT TERM DEPOSIT TERM DEPOSITS TRADE DATE TRADING TRANSACTION TRANSPARENCY UNSECURED DEBT VALUATION World Bank Mongolia Financial Sector Assessment : Housing Finance |
| geographic_facet |
East Asia and Pacific Mongolia |
| description |
As the Mongolian mortgage market grows
rapidly, and the Government of Mongolia (GoM) pursues an
ambitious social housing agenda, there is an urgent need for
a holistic sector approach. The following three key areas
require attention from policymakers: first, there is a need
to better balance housing supply and demand, which requires
the authorities to focus on prudent mortgage lending
standards and supervision, as well as on provision of
housing infrastructure and zoned land. Second, it will be
important to ensure effective implementation of ongoing and
planned public housing finance programs, with a focus on
preventing mortgage market distortions in pricing,
emphasizing robust planning and rigorous transparency and
governance. Third, authorities should aim for better balance
in the composition of mortgage funding, with a focus on
improvement in the legal and regulatory framework for
capital markets, as well as Mongolian Mortgage Corporation
(MIK) governance, products and operations. The Mongolian
mortgage market is exhibiting strong growth, with portfolio
outstanding increasing by 190 percent to Mongolian Tughrik
(MNT) 656 billion (US$482 million) between 2009 and
end-2011. This represents 8 percent of 2010 gross domestic
product (GDP) and 12 percent of the 2011 banking loan book.
The sector is highly concentrated, with top 4 lenders
accounting for 89 percent of the market, as well as
spatially in and around Ulaanbaatar. Housing prices have
risen sharply in the last two years, particularly in 2011,
when the increase for the predominantly mortgaged market
segment was over 36 percent. While mortgage lending growth
rates are consistent with the overall growth of household
credit, real estate prices significantly outpaced Consumer
Price Index (CPI) and GDP growth in 2011. Currently
non-performing loans (NPL) are very low due to the
unseasoned mortgage portfolio; however, high debt-to-income
(DTI) ratio levels may exacerbate future loan age-related
and cyclical delinquency increases. Due in part to extreme
climatic constraints, shortage of zoned and serviced land,
and infrastructure bottlenecks, housing supply is severely
constrained. Large-scale, publicly-funded, subsidized
housing initiatives, such as the '100,000
Apartments' Program, need to be carefully planned, so
that they cause minimal distortion to the broader housing
finance market. |
| format |
Report |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Mongolia Financial Sector Assessment : Housing Finance |
| title_short |
Mongolia Financial Sector Assessment : Housing Finance |
| title_full |
Mongolia Financial Sector Assessment : Housing Finance |
| title_fullStr |
Mongolia Financial Sector Assessment : Housing Finance |
| title_full_unstemmed |
Mongolia Financial Sector Assessment : Housing Finance |
| title_sort |
mongolia financial sector assessment : housing finance |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/865831468277491376/Mongolia-Financial-Sector-Assessment-Program-development-module-housing-finance-technical-note http://hdl.handle.net/10986/26815 |
| _version_ |
1764462698508058624 |
| spelling |
okr-10986-268152021-04-23T14:04:37Z Mongolia Financial Sector Assessment : Housing Finance World Bank ACCOUNTING ASSET-LIABILITY MANAGEMENT AUCTION BALANCE SHEET BALANCE SHEETS BANK CREDIT BANK LENDING BANK REGULATIONS BANKING CRISIS BANKING REGULATION BANKING SECTOR BANKING SYSTEM BENEFICIARIES BOND BOND INSTRUMENTS BONDS BORROWER BORROWER FINANCING BROKERAGE CADASTRE CAPACITY CONSTRAINTS CAPITAL ADEQUACY CAPITAL ALLOCATION CAPITAL BASE CAPITAL FLOWS CAPITAL FUND CAPITAL GAINS CAPITAL MARKET CAPITAL MARKETS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPITALIZATION CASH FLOWS CENTRAL BANK CENTRAL BANKS CENTRAL SECURITIES DEPOSITORY COLLATERAL COMMERCIAL BANK COMMERCIAL BANK LOANS COMMERCIAL BANKS COMMERCIAL MORTGAGE CONSUMER CREDIT CONSUMER PROTECTION CORPORATE DEBT CORPORATE GOVERNANCE CREDIT AVAILABILITY CREDIT CARDS CREDIT COOPERATIVE CREDIT ENHANCEMENTS CREDIT GROWTH CREDIT GUARANTEES CREDIT INFORMATION CREDIT INFORMATION BUREAU CREDIT RATING CREDIT RATIONING CREDIT RISK DEBENTURES DEBT DEBT FINANCING DEBT INSTRUMENTS DEBT ISSUES DEBT OUTSTANDING DEBT SERVICE DEFAULT COSTS DEPOSIT INSURANCE DEVELOPMENT BANK DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DURATION MATCHING EQUITY CAPITAL EQUITY STAKE EXCHANGE RATE EXPENDITURE EXPENDITURES FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL STABILITY FINANCIAL SYSTEM FORECLOSURE FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN INVESTMENT FUTURE LOAN GLOBAL FINANCIAL STABILITY GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROUP LOAN HOLDING HOUSING FINANCE IMMOVABLE PROPERTY IMPLICIT SUBSIDIES INDEBTEDNESS INFLATION INFORMATION TECHNOLOGY INITIAL PUBLIC OFFERING INSTITUTIONAL CAPACITY INSTITUTIONAL INVESTORS INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCIAL INSTITUTIONS INVESTMENT FUND INVESTMENT PURPOSES INVESTMENT VEHICLES INVESTOR BASE INVESTOR CONFIDENCE IPO ISSUANCE LEGAL FRAMEWORK LEGISLATIVE FRAMEWORK LENDER LENDERS LEVEL PLAYING FIELD LIABILITY LIABILITY BASE LIEN LIQUIDITY LIQUIDITY RATIOS LIQUIDITY RISK LLC LOAN AMOUNT LOAN AMOUNTS LOAN CLASSIFICATION LOAN GUARANTEE LOAN PORTFOLIO LOAN PRODUCTS LOAN REPAYMENTS LOAN TERM LOCAL CURRENCY LONG-TERM LIABILITIES MARKET ACCESS MARKET DATA MARKET DEVELOPMENT MARKET DISTORTION MARKET DISTORTIONS MARKET INSTRUMENTS MARKET INTEREST RATES MARKET INTERMEDIARIES MARKET INTERMEDIARY MARKET LIQUIDITY MARKET PARTICIPANT MARKET PARTICIPANTS MARKET PRICES MARKET SIZE MARKET VALUE MATURITIES MATURITY MICRO LOANS MICROFINANCE MONETARY FUND MORAL SUASION MORTGAGE MORTGAGE BONDS MORTGAGE FINANCE MORTGAGE INTEREST MORTGAGE LOAN MORTGAGE LOANS MORTGAGE MARKET MORTGAGE MARKETS MORTGAGE-BACKED SECURITIES MORTGAGES NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPEN MARKET OUTSTANDING AMOUNTS OUTSTANDING LOAN PARTIAL CREDIT PAYMENT OF PRINCIPAL PLEDGES POLICY RESPONSES PORTFOLIO PORTFOLIO ALLOCATION PORTFOLIO OF MORTGAGE PORTFOLIO PERFORMANCE PORTFOLIOS PREPAYMENTS PRICE DISCOVERY PRIVATE BANKS PRIVATE CAPITAL PRIVATE EQUITY PRIVATE LENDERS PROBABILITY OF DEFAULT PROPERTY RIGHTS PROVISION OF CREDIT PRUDENTIAL REGULATION PRUDENTIAL SUPERVISION RATES OF RETURN REAL ESTATE INVESTMENT REAL PROPERTY REGISTRY SYSTEMS REGULATORY AUTHORITIES REGULATORY FRAMEWORK REMITTANCES REPO REPOS RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RESIDENTIAL MORTGAGE RISK MANAGEMENT RISK PROFILE SECURITIES SECURITIES MARKET SECURITIES MARKET LAW SHARE OF INVESTMENT SHAREHOLDER SHAREHOLDERS SOVEREIGN BONDS SOVEREIGN GUARANTEE SOVEREIGN GUARANTEES STAMP DUTY STOCK EXCHANGE SWAP TAX TAX EXEMPTION TAX TREATMENT TERM DEPOSIT TERM DEPOSITS TRADE DATE TRADING TRANSACTION TRANSPARENCY UNSECURED DEBT VALUATION As the Mongolian mortgage market grows rapidly, and the Government of Mongolia (GoM) pursues an ambitious social housing agenda, there is an urgent need for a holistic sector approach. The following three key areas require attention from policymakers: first, there is a need to better balance housing supply and demand, which requires the authorities to focus on prudent mortgage lending standards and supervision, as well as on provision of housing infrastructure and zoned land. Second, it will be important to ensure effective implementation of ongoing and planned public housing finance programs, with a focus on preventing mortgage market distortions in pricing, emphasizing robust planning and rigorous transparency and governance. Third, authorities should aim for better balance in the composition of mortgage funding, with a focus on improvement in the legal and regulatory framework for capital markets, as well as Mongolian Mortgage Corporation (MIK) governance, products and operations. The Mongolian mortgage market is exhibiting strong growth, with portfolio outstanding increasing by 190 percent to Mongolian Tughrik (MNT) 656 billion (US$482 million) between 2009 and end-2011. This represents 8 percent of 2010 gross domestic product (GDP) and 12 percent of the 2011 banking loan book. The sector is highly concentrated, with top 4 lenders accounting for 89 percent of the market, as well as spatially in and around Ulaanbaatar. Housing prices have risen sharply in the last two years, particularly in 2011, when the increase for the predominantly mortgaged market segment was over 36 percent. While mortgage lending growth rates are consistent with the overall growth of household credit, real estate prices significantly outpaced Consumer Price Index (CPI) and GDP growth in 2011. Currently non-performing loans (NPL) are very low due to the unseasoned mortgage portfolio; however, high debt-to-income (DTI) ratio levels may exacerbate future loan age-related and cyclical delinquency increases. Due in part to extreme climatic constraints, shortage of zoned and serviced land, and infrastructure bottlenecks, housing supply is severely constrained. Large-scale, publicly-funded, subsidized housing initiatives, such as the '100,000 Apartments' Program, need to be carefully planned, so that they cause minimal distortion to the broader housing finance market. 2017-05-31T20:24:56Z 2017-05-31T20:24:56Z 2012-06 Report http://documents.worldbank.org/curated/en/865831468277491376/Mongolia-Financial-Sector-Assessment-Program-development-module-housing-finance-technical-note http://hdl.handle.net/10986/26815 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Financial Sector Assessment Program Economic & Sector Work East Asia and Pacific Mongolia |