How Mongolia’s microfinance experiment built a state’s economy

As Mongolia transitioned from a centrally planned economy to a free market one, the government created a brand new microfinance institution to lend small amounts to low-income people. The initiative developed innovative financial products that allow marginalised populations to access credit and invest in their livelihoods. The government went on to create XacBank, a nationally owned bank with social aims and current total assets of $450 million. By 2005 there were 17 banks, 126 non-bank institutions and 270 cooperative credit and savings associations in Mongolia.