Ulaanbaatar, Mongolia, January 23, 2014—IFC,
a member of the World Bank Group, signed an advisory agreement with one
of Mongolia’s largest banks, XacBank, to expand financing to more small
and medium enterprises, especially those run by women entrepreneurs.
The Mongolian bank becomes the second
lender to join IFC’s Women in Business Program for East Asia and the Pacific,
launched last year to help commercial banks provide more and better financial
and business development services to small and medium women businesses.
Women run or partly own more than half
of Mongolia’s companies, but women-owned businesses are still underrepresented
on the loan portfolios of banks. Women entrepreneurs have repeatedly identified
insufficient access to finance and business development services as major
constraints to growing their businesses.
“Innovation is critical for XacBank’s
future growth,” said XacBank Chief Executive Officer Bat-Ochir Dugersuren.
“We are committed to partnering with IFC to make new ventures that enhance
IFC will help XacBank explore new financing
opportunities for small and medium enterprises, develop a strategy for
targeting the women’s market, and improve risk management. In particular,
IFC will help XacBank introduce innovative customer management practices
to enhance the lender's ability to understand, target, and retain small-business
“Women are critical to economic growth
and development in Mongolia,” said Hyun-Chan Cho, IFC’s Country Manager
for China, Mongolia, and Korea. “We can help XacBank respond to their
business needs in a commercially and socially sustainable way.”
The IFC Women in Business program aims
to reach more than 10,000 women-owned small and medium enterprises and
disburse around $200 million in loans by June 2017. Rizal Commercial Banking
Corp. from the Philippines is the first bank to join the program.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org.