Open AccessNon-Performing Loan Recovery: The Case of Mongolia
Author(s) -
Davaajargal Luvsannyam,
Minjuur Enkhtur,
Lkhagvadorj Dulguun,
Bekhbat Enkhsuren
Publication year - 2020
Language(s) - English
DOI - 10.47260/jafb/1116
Subject(s) - recovery rate , loan , non performing loan , economic recovery , business , actuarial science , economics , finance , macroeconomics , chemistry , chromatography
In this study, the activities related to the recovery of non-performing loans wereconsidered in case of “Savings Bank” LLC. According to the survey, it takes anaverage of 4.2 years to recover non-performing loans, and recovery rate is onaverage 83 percent. The recovery rate of loans has been declining over time despitethe fact that it was high in the first years of the receiver's appointment. Furthermore,the amount of non-performing loans recovered out-of-court was relatively smallcompared to the amount of that recovered through the courts. Although in-courtactivitiesto recover the non-performing loanstakes 1.3 years more than out-of-court,the recovery rate is 7% higher in terms of judicial proceedings.JEL classification numbers: G21, G29, G33.Keywords: Non-performing loans, Recovery rate, Banking sector.