Abstract

The purpose of this study is to examine how the new coronavirus has affected the Mongolian
economy, especially the loan of non-bank financial sector, over the past two years, and the
measures and policies taken by the Financial Regulatory Commission against it. When the first
plague case was discovered, our economy became very unstable. For example, large businesses
in the economy have come to a standstill, and financial institutions face risks such as loan
repayment, profitability and liquidity. The majority of non-bank financial sector income depends
on loan services. Using the surveys and data comparison methods, in the third quarter of 2021,
consumer loans accounted for the largest share of NBFIs' loans to individuals and businesses, but
compared to the pre-pandemic period, there was a decline in loans to construction, mining,
manufacturing, trade, and agriculture. Although the total loan amount increased from 1169.3
billion MNT in the third quarter of 2019 to 1765.9 billion MNT by the third quarter of 2021,
there was a decline in each type of loan. This may be because the epidemic has reduced people's
ability to borrow from NBFIs. The measures taken by the Financial Regulatory Commission
against the crisis were include extending the loan agreement, reducing costs, increasing equity,
increasing the contingency fund, developing contingency plans and preparedness strategies in the
event of unforeseen. As a result, thanks to these actions we could adapt to the crisis and start
trying to find a way to reawake our economy. From the beginning of 2022, all kind of lockdown
and prohibition has canceled and the loans have re-paid as usual. This means the economy is
getting better day by day. In a conclusion, our economy is getting stronger and we are going
through the most difficult economic conditions and how we are looking for ways to destabilize
the economy is helping to prepare for any re-crisis.