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Right Bank - XacBank

XacBank (Mongolian: Хас Банк, Khas Bank) is a microfinance institution[1] and community development bank[2] in Ulaanbaatar, Mongolia, formed in December 2001. It is Mongolia's fourth-largest bank.[3]


XAC (Golden Fund for Development) LLC began in 1998 as part of the “MicroStart Mongolia” project under UNDP, shortly afterwards transformed into Mongolia’s first NBFI (non-bank financial institution) by uniting the micro-financial service activities of six national NGOs (non-government organizations).

XacBank was formed on October 1, 2001 by merging the two largest NBFIs, (X.A.C. (Golden Fund for Development) LLC and Goviin Ekhlel (Gobi Initiative) LLC), in Mongolia.[4]

Address: Prime Minister Amar's Street Sukhbaatar District, POBox-46/721 Ulaanbaatar 210646 Mongolia

As of June 2012, it has 1001-5000 employees[5]

Executive Management Team[edit]

  • Bat-Ochir Dugersuren (CEO)[6]
  • Ganbaatar Jambal(President)
  • Delgerjargal Bayanjargal(VP of Retail Banking)
  • Aart Jongejaans (Chief Risk Officer)
  • Erdenebayar Ganzorig (Chief Financial Officer)
  • Munhbayar Chogsom (Chief Operating Officer)
  • Gerelmaa Yunden (Chief Credit Officer)
  • Battugs Chadraa(Chief Information Officer)

TenGer Financial Group LLC[edit]

Founded in 1999 as one of the first non-bank financial companies in Mongolia and was initially known as Goviin Ekhlel. It then became a holding company of XacBank upon the merger of Goviin Ekhlel with X.A.C. (Golden Fund for Development) two major non-bank financial institutions in 2001, which created XacBank and X.A.C.-GE Holding. X.A.C.-GE Holding was renamed TenGer Financial Group. It is a parent of XacBank and other companies such as, ХасLeasing, ХасSecurity and Horus Nomadic Solutions.

TenGer Financial Group's shareholders comprise well known international institutions, such as IFC, EBRD and Mercy Corps, and local business entities.

In 2009 TenGer Financial Group successfully raised shares worth MNT 7.5 billion thanks to its shareholders including, EIT Capital Management LLC, IFC, EBRD, Mercy Corps, Triodos Bank Group, BlueOrchard Private Equity Fund and local NGOs. MNT 5 billion of this raised shares are expected to infuse Xac Bank's capital and enlarge its service scope.[7]

On September 3, 2012, TenGer established the first Sino-Mongolia Micro Finance Institution along with four other investors such as IFC.[8] With the combined international microfinance knowledge and experience of its investors, TianRong is in a unique position to lead in the microfinance sector in Xinjiang, China and elsewhere in Central Asia.

Financial Position and Portfolio[edit]

By the end of 2008, XacBank served more than 64,607 borrowers and 112,917 depositors through 74 branches, with a total loan portfolio of over $ 56 million, deposits of $ 124 million, and a staff of 1020.

In 2011, XacBank had 77,345 active borrowers, a Gross Loan Portfolio of USD $393.2 million, and assets of USD $594.6 million[9]

XacBank’s ownership comprises the EIT (Employee Investment Trust) Capital Management (24.31%), International Finance Corporation (11.81%) and the European Bank for Reconstruction and Development (11.15%) along with various ethical and social investors including Mercy Corps (15.78%) and Triodos (14.98%).[10]

On May 23, 2012, Moody's Investors Service downgraded some of Xac Bank's long-term debt to B1 from Ba3.[11]

XacBank will fund microloans for the purchase and installation of more efficient household insulation and heating fixtures in Ulaanbaatar as a means of generating carbon credits. The carbon credits will be generated by capturing reductions of greenhouse gas emissions. Citi Bank will purchase 1.17 million metric tons of carbon credits from MicroEnergy Credits. The first carbon credits are expected to be available for purchase by Citi Bank in March 2013.[12]

Products and Services[edit]

XacBank’s core products include current and savings accounts, various credit and lending products, as well as both domestic and international remittances.

Moreover, XacBank provides not only credit and debit card products such as MasterCard and VISA card being an associate member of these organizations, but also, popular international remittances and settlements through SWIFT, EUROGIRO and Western Union being a principal member of these networks.

The main product categories

  • Deposit
  • Loan
  • Leasing
  • Remittance
  • Electron banking
  • Trade finance
  • Training and Consulting

Percentage of operations comprised by microfinance:


Other services provided:

Full-scale financial services
Second-tier lending to MFIs

Main Funding Sources

  • Loans
  • Savings
  • Shareholder capital

Largest funder

  • TenGer Financial Group LLC


Primary network
MFC (Microfinance Centre for Central and Eastern Europe and the New Independent States), EuroGiro network, Western Union, Swift network, GRI (Global Report Initiative)
Secondary network
MasterCard Worldwide, Visa International

External Evaluators' Ratings[edit]

Primary rater
Moody’s Investors Service - “Ba1” as of May, 2007
Secondary rater
Planet Rating - “A” as of April, 2006{{[13]}}
Other ratings
Fitch ratings as of February 2012
Long-Term Foreign and Local Currency IDR affirmed at 'B'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'B'
Viability Rating affirmed at 'b'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'B-'[14]

Honorable Mentions[edit]

In 2008, XacBank had the privilege of co-hosting the 11th Annual Conference of Microfinance Institutions, under the patronage of the President of Mongolia, where MFC (Microfinance Centre for Central and Eastern Europe and the New Independent States) held its first ever conference in Central Asia. The microfinance industry is maturing, and the conference addressed the changes taking place, with investors arriving on the scene in force, and the need for traditional MFI models to upgrade with new technology and business practice. Microfinance generally refers to loans, savings, payments, and insurance services targeted at low-income clients.


  1. ^ "Report about Xac Bank". Kiva.org. Retrieved 2012-06-18. 
  2. ^ "CapitalPlus Exchange Corporation". CapitalPlus Exchange Corporation. Retrieved 2012-06-18. 
  3. ^ Desai, Umesh. "Mongolia's XacBank shelves debut USD deal". Reuters. Retrieved 2012-06-18. 
  4. ^ "Mix Market Report". Mix Market Report. Retrieved 2012-06-18. 
  5. ^ "Information about Xac Bank". Xac Bank. Retrieved 2012-06-18. 
  6. ^ "Report about Xac Bank". Global Alliance for Banking on Values. Retrieved 2012-06-18. 
  7. ^ "MNT 5 bn capital injected into Mongolian microfinance". Retrieved 24 November 2009
  8. ^ "IFC Invests in the First Sino-Mongolian Microfinance Project, Supporting Regional Economic Cooperation". Retrieved 26 November 2012. 
  9. ^ "Mix Market Report". Mix Market Report. Retrieved 2012-06-18. 
  10. ^ "Report about Xac Bank". Global Alliance for Banking on Values. Retrieved 2012-06-18. 
  11. ^ "MONGOLIA: MOODY'S DOWNGRADES THE RATINGS OF FOUR MONGOLIA BANKS TO B1". Highbeam Business Reports. Retrieved 2012-06-18. 
  12. ^ "Citi to Purchase 1.17 Million Tonnes of Carbon Credits in Innovative Microfinance Deal with MicroEnergy Credits and Mongolia’s XacBank". Press Release: Citigroup Inc. – Thu, Apr 26, 2012 5:52. Retrieved 2012-06-18. 
  13. ^ http://www.mixmarket.org/sites/default/files/medialibrary/20501.38/PlanetRating_XacBank_2006_Final1.pdf
  14. ^ "Fitch affirms Mongolia's XacBank at 'B';outlook stable". Reuters. February 22, 2012. 


External links[edit]