State Bank of the Mongolian People's Republic

the sole bank of issue, clearing, and credit of the Mongolian People’s Republic. Founded in 1954, it was based on the reorganization of the Mongolian bank for commerce and industry, Mongolbank, which had operated from 1924 to 1954 as a Mongol-Soviet joint-stock company. The statutory capital was set at 13.7 million tugriks.

The bank grants short-term credits for the supply of working capital to the government and to cooperative enterprises and organizations transferred to profit-and-loss accounting (in some branches of the national economy the relative share of all these credits reaches 90 percent of the working capital). It also finances agricultural associations for capital construction, water supply, introduction of machinery, and so on. It grants agricultural associations short-term credits for the purchase of seeds and fodder and for seasonal expenses. The bank gives credits to the public for the building of individual residences. In 1964 a differential credit and settlement system for well and poorly working enterprises was introduced.

The bank controls the money circulation in the country, makes book-entry, noncash clearings between government organizations, controls the productive activity of government organizations, and ensures budget fulfillment in cash terms. At the end of the 1960’s the State Bank was carrying out credit and clearing operations with 40 foreign banks. In 1970 the bank had 19 regional divisions with 13 branch offices, as well as 200 savings banks.