Xac Bank Company Ltd. (Mongolia)

The Bank s principal business activity is commercial and retail banking operations and financial services within the Mongolia. The Bank has operated under a full banking License No. 24 issued by the Bank of Mongolia on 27 December 2001.
The Bank was a limited liability company, incorporated and domiciled in Mongolia.
As of 31 December 2009 and 2010 the Bank s immediate and ultimate parents was TenGer Financial Group LLC which is incorporated and domiciled in Mongolia.
The Bank has been and continues to predominantly involved in providing micro financing to the general public to develop retail and small and meduim enterprises.
For the year end 2001, the Income Statement, Changes in Equity statement and Cash Flow statement were not available. While for the year end 2012, the Changes in Equity statement and Cash Flow statement were not available.
History
XacBank was created as a result of a merger of the two largest NBFI's in Mongolia, “Goviin Ekhlel” LLC and “X.A.C” LLC, in late 2001. Goviin Ekhlel LCC was established by Mercy Corps in December 1999 with funding from USAID as an NBFI serving SMEs. X.A.C., LLC began 1998 under the Micro Start Mongolia Project under UNDP, later transformed into Mongolia's first NBFI by uniting the financial services activities of six local NGO's
These NBFI's operated in different geographic regions and were serving different markets, SME loans vs. microloans. However, both had the same strategic goal of becoming commercial banks with a full range of financial services. All these factors became the foundations of the merger of these two independent institutions to form XacBank.
By the end of its first year of operation (2002), XacBank was present in each of the aimags of Mongolia. Since that time the Bank has continued to expand with new branch openings, fulfilling its strategy of providing a full range of financial services aimed at citizens in remote rural areas, including nomadic herders. Thus the Bank is becoming more competitive by offering a range of loan and deposit products targeted at various segments of the market.
By year end 2004, XacBank disbursed 138,415 loans through 37 branches with 506 staff, operating throughout Mongolia. The Bank offers 14 types of loan products and seven types of savings products. In addition, the Bank offers money transfer, payment settlement and leasing services. Also the Bank provides services to the residents of remote rural areas via a mobile banking scheme, which has already reached approximately one third (137) of the total Soums in Mongolia. In order to provide sustainable financial services at the Soum level a franchising model is being implemented. This model implies the establishment of a Soum based Savings and Credit Cooperative (SCC) formed and operated by the local residents in a sustainable manner, with technical and operational support from the Bank.
As of end of 2004, total deposits were MNT 15.7 billion, an increase of 39 percent over 2002. This is an increase of 2.6 times over the last three years. Meanwhile on the fee earning side, money transfer service rose by MNT 900 million each month in 2004. Total assets amounted MNT 31.6 billion, loan portfolio MNT 20.3 billion and Portfolio At Risk was 1.3 per cent, respectively. The Bank has generated outstanding results from start-up losses in 2002 to generating a profit of MNT 795.2 million in 2004.
By the decision of shareholders and board of directors of TenGer Financial Group LLC, who is 100 owner of both The bank and XacLeasing, XacLeasing was merged into The bank and subsequently organized into Leasing Division of the bank in 13 November 2021