The deposit insurance system is an internationally recognized and widely used insurance system designed to prevent the financial sector /banking/ from a systematic crisis to a certain extent and protect the small depositors. In other words, large depositors have a higher chance to access the financial information quickly in the event of a financial crisis, hence overcoming it with less damage. However, the risk is higher for small depositors due to the fact that the unawareness of the situation and inability to determine the way out of it. Therefore, the government is working to protect the small depositors and prevent the banking and financial crisis by introducing best international practices.
The deposit insurance system was put into effect with the passing of The Bank Deposit Insurance Law by the Mongolian National Parliament on January 10th. 2013.
- An amount of up to 20 million MNT of your current and savings accounts will be insured and it is not necessary to pay a fee or premium since your bank will cover it, in accordance with policy.
- All 12 commercial banks in operation in Mongolia offer deposit insurance.
In an insurance case, or when a decision has been made by Bank of Mongolia to liquidate the bank, the Deposit Insurance fund will reimburse an amount of up to 20 million MNT of the money in your current and savings accounts at the bank in question.