This report does not constitute a rating action. ALAC--Additional loss-absorbing capacity. CRA--Comparable ratings analysis. GRE--Government-related entity. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Overview Key strengths Key risks Well-established market position in Mongolia's banking industry. Small economy with high dependence on commodity cycles. Large and sticky customer depositor base. Sizable exposure to cyclical corporate sectors despite reduction. Rapid loan growth could lead to elevated credit losses when economy turns unfavorable. Tightened regulatory measures in recent few years will support sustainably better asset quality and profitability for Mongolian banks, in our view. These measures include an asset quality review targeted at domestic systemically important banks (D-SIBs) including TDB, implementation of International Financial Reporting Standard 9 (IFRS 9), and the requirement of a
