Khan Bank LLC

Gross Loan Portfolio USD, 2010: 641.9 million

Number of active borrowers 2010: 309,866

Average loan balance per borrower USD, 2010: 2,071.5

Deposits USD, 2010: 1.1 billion

Assets USD, 2010: 1.3 billion

Number of depositors 2010: 1.6 million

Mission:

Khan Bank is the nationwide leader in innovative financial services that change people's lives and benefit society. We are committed to transparency, fairness and to providing the highest level of customer service in Mongolia.

Background and Main Challenges:

Khan Bank is doing business with 62% of Mongolian households. Khan Bank's national role is to improve the lives of people, to bring efficient financial services and important communication services to the most remote areas and to contribute significantly to the development of Mongolian economy.

Address:

Street -25, P.O.Box-192,

Ulaanbaatar - 44

Mongolia

Phone:

979-11-332333

Fax:

976-11-70117023

Email:

info [at] khanbank [dot] com

Website:

www.khanbank.com

Products and Services:

Loans

Voluntary Savings

Products:

Ag Bank Personal or Business Account
Ag Bank Savings Account
Ag Bank Term Deposit
Small Business Loan
Business Loan
Herder Loan
Salary Loan
Pension Loan
Savings Loan

Services Provided:

Full-scale Financial Services

% Operations Comprised by MF:

51 - 60

Date established:

Jan 1 1991

FYE:

31-Dec

Current Legal Status:

Bank

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Clients living in rural areas	1
Clients living in urban areas	2
MSE	3
Adolescents and youth (below 18)	4
Women	5
+ Development goals (ranked by importance)
Increased access to financial services	1
Growth of existing businesses	2
Development of start-up enterprises	3
Employment generation	4
Housing	5
Poverty reduction	6
Improvement of adult education	7
Children's schooling	8
Youth opportunities	9
Health improvement	10
Gender equality and women's empowerment	11
Water and sanitation	12
+ Poverty targets
No specific poverty target
+ Governance
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Microcredit for household needs/consumption
SME loans
Loans for agriculture
Loans for education
Housing loans
+ Savings products offered
Checking accounts
Voluntary savings accounts
Compulsory savings accounts (cash collateral)
Fixed term deposits
Special purpose savings accounts
+ Compulsory insurance products required
Real estate insurance (for mortgage loans) and car insurance
+ Voluntary insurance products offered
+ Other financial products and services offered
Debit/credit card
Mobile banking services
Savings facilitation services
Remittances services
Microleasing
+ Non-financial services offered
+ Enterprise services offered
Enterprise skills development
Business development services
+ Education services offered
Financial literacy education
+ Health services offered
+ Women's empowerment services offered
+ Products and services targeting the poor
Products and services specifically designed to target the poor:
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Declining balance interest method
+ Social responsibility to staff
+ Human resources
Transparency on salary (a clear salary scale based upon market salaries)
Benefits (medical insurance, pension contribution)
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Outreach to remote/rural communities
Outreach to women
Quality of interaction with clients based on client feedback mechanisms
Quality of social data collected
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
This institution raises clients' awareness about environmental impacts
This institution trains/educates clients regarding environmental improvements
This institution includes specific clauses in its loan contracts to mitigate specific environmental risks
This institution identifies enterprises with environmental risk
+ Poverty measurement tools in use

Partnerships

Current
Name	Relationship
IFC	Funding
PlaNIS	Funding
responsAbility Global Microfinance Fund	Funding

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