AMENDMENT TO LAW ON DEPOSIT INSURANCE APPROVED

Ulaanbaatar /MONTSAME/ During its meeting on January 3, the Cabinet discussed and agreed to submit amendments to the law on deposit insurance and amendments to related laws to the Parliament. The aims of the amendments are to develop legal environment of compulsory deposit insurance in compliance with international principle and standard. Moreover, it is aimed to ensure credibility of banks to protect depositors from losses caused by a bank's inability to pay its debts when due and improve independence of deposit insurance organization. In particular, it is stated not to include following persons in deposit insurance such as influential bank shareholder, individual who acquires over 50 percent of shareholders’ vote, high-ranking officials, depositor who got loan with special condition that influenced on worsening the banks financial situation or loan with very low interest rate as well as depositor who earns more than 50 per cent interest rate than avarage savings account interest rate. E.Altanzul