The Central Bank of Mongolia’s Monetary Policy Committee held an unscheduled meeting and amended consumer lending rules while tightening liquidity conditions. It reset the upper limit of the debt-service-to-income ratio at 45% for newly issued consumer loans and consumer loans with modified terms, and increased reserve requirements by 1 percentage point to 14% for domestic currency and 19% for foreign currency. The measures are framed as a response to still-elevated credit growth despite a tight monetary policy stance, with outstanding loans up 21% year on year as of November 2025. The statement highlights risks from expanding consumer lending, including demand-driven inflation, reduced financing for business lending, stronger consumer imports, and added pressure on the exchange rate and balance of payments, alongside heightened external uncertainty and a need to strengthen banking system resilience. Further policy actions will depend on macroeconomic and financial developments, and extracts of the meeting minutes are due to be published on the central bank’s website in two weeks.
Central Bank of Mongolia 2026-01-16
Central Bank of Mongolia resets consumer loan DSTI cap to 45% and raises reserve requirements to 14% and 19%
The Central Bank of Mongolia’s Monetary Policy Committee held an unscheduled meeting to amend consumer lending rules and tighten liquidity by resetting the debt-service-to-income ratio to 45% for consumer loans and increasing reserve requirements by 1 percentage point. These measures address elevated credit growth and associated risks, with further policy actions contingent on macroeconomic developments; minutes will be published in two weeks.