XacBank

XacBank began its operations in 1998 as a microfinance project and obtained a banking license in 2001. It has 480,000 active depositors and 120,000 borrowers who are served through 87 branches, half of them are located in rural areas. It offers retail, microfinance, SME and corporate banking services. XacBank continually develops products and services to best serve its clients. For instance, it has introduced digital and mobile banking solutions and sustainable finance products through its Eco-Banking department, notably products which address air pollution and energy issues in the country. Women represent the majority of XacBank’s clients (64 percent in 2018) and one of the ways the bank demonstrates its commitment to female clients is by offering tailor-made products and discount rates to women entrepreneurs.

Mongolia lived through an economic downturn between 2015-2016 due to a decline in commodity prices and slower economic growth in China, which impacted many SMEs. After the first senior loan in 2016, SIFEM reaffirmed its commitment to support the bank and contributed USD 10 million to an IFC-led syndication, entirely ringfenced to micro and SME borrowers. Therefore, SIFEM’s loan will help XacBank to provide additional financing support to micro and small entrepreneurs during the economic recovery. It will foster financial inclusion by increasing access to finance in rural areas and contribute to diversification and long-term sustainability of the Mongolian economy through job creation, financial sector deepening and financial innovation.