XacBank

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Products

XacBank offers 12 credit products, 7 deposit products, money transfers and foreign currency exchange. The company targets micro entrepreneurs and SMEs in urban and rural areas, and grants loans that average in size from US$95 to $20,000. It is "one of the very few regulated banks specialized in microfinance". It's mission is to provide financial services to those who have small incomes or live in locationst hat make it hard to take advantage of those services.

History

Founding

XacBank was founded in 1998 as XAC NBFI by two United Nations development agencies,Citation|last=Cummings|first=Betsy|title=Tiny Loans Stimulate the Appetite for More|newspaper=New York Times|date=January 27, 2005|url=http://www.nytimes.com/2005/01/27/business/27sbiz.html?_r=1&pagewanted=all&position=&oref=slogin|accessdate=2007-01-14] UNDP and Microstart. The company originally focused on granting microloans in Mongolia. In 2001, it merged with a non-banking financial institution which had targeted small and medium enterprises (SMEs). The main shareholder of the new company, which took the name XacBank, was local company XAC-GE LLC,Citation|title=XacBank: Mongolia–June 2004|publisher=Planet Rating: Transparency for Microfinance Development|date=June 2004|url=http://www.uncdf.org/english/microfinance/docs/technical_review/XacBank_PlanetRatingFINAL.pdf|accessdate=2008-01-13] of which Mercy Corps as the primary shareholder of the corporation.Citation|last=Cummings|first=Betsy|title=Tiny Loans Stimulate the Appetite for More|newspaper=New York Times|date=January 27, 2005|url=http://www.nytimes.com/2005/01/27/business/27sbiz.html?_r=1&pagewanted=all&position=&oref=slogin|accessdate=2007-01-14] Its headquarters are located in Ulaanbaatar, the capital of Mongolia.

Growth

XacBank first broke even in 2003, and by 2004 it had established 34 branch offices. By June 2004, the bank held 3% of Mongolia's bank loan portfolio (ranked 11 out of 17 banks in the country). At that time, the bank's portfolio consisted of $14 million for 25,015 borrowers and deposits of $10.7 million for 61,534 depositors.

In September 2005 XacBank concluded a three-year USAID Implementation Grant Program (IGP). By this time the loan portfolio had increased to $28.8 million. The bank had also expanded its reach, with 53 branches as well as mobile banking services in 180 remote areas of the country.Citation|title=Note from Mongolia: XacBank Deepens Outreach Through IGP|date=December 7, 2005|url=http://www.microlinks.org/ev02.php?ID=9378_201&ID2=DO_TOPIC|accessdate=2008-01-13|publisher=Microenterprise Learning, Information and Knowledge Sharing]

References

External links

* [http://www.xacbank.mn Xacbank official site]