Central Bank of Mongolia eases consumer loan restructuring limits with maturity extensions of up to 48 months

The Central Bank of Mongolia's Monetary Policy Committee has decided to ease restrictions on restructuring consumer loans to give borrowers in financial difficulty more scope to reduce repayments. For consumer loans subject to debt-to-income (DTI) limits, restructuring without additional lending will allow maturity extensions of up to 48 months in total, with DTI limits waived for those loans. DTI and maturity restrictions have constrained banks' ability to extend repayment schedules and lower instalments for borrowers facing financial difficulties. The nonperforming loan ratio for consumer loans subject to DTI limits reached 9.1% in September 2026, up 2.7 percentage points from a year earlier. Although consumer loan performance has shown signs of stabilizing in recent months, previously issued loans remain at risk of becoming nonperforming. Among the banking sector's 1.2 million individual borrowers, 66.4% had DTI ratios above 45% in September 2026. Differences between bank and nonbank consumer lending rules also create risks of borrowers accumulating debt across multiple institutions. Other macroprudential policy settings remain unchanged. Credit growth has slowed and cyclical risks have declined, while stress tests indicate that banking system capital adequacy would remain above regulatory requirements under a major adverse macroeconomic shock. Nevertheless, risks remain concentrated in some lending segments, particularly consumer credit.