XacBank

From Wikipedia, the free encyclopedia

The corporate logo for XacBank.

Founded in 1998, XacBank (sounds like "Hass-Bank" in English) is a community development bank and microfinance institution in Mongolia, and is headquartered in Ulaanbaatar.

1 Products
2 History
- 2.1 Founding
- 2.2 Growth
3 References
4 External links

[edit] 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".^[1] 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.^[2]

[edit] History

[edit] Founding

XacBank was founded in 1998 as XAC NBFI by two United Nations development agencies,^[3]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,^[1] of which Mercy Corps as the primary shareholder of the corporation.^[3] Its headquarters are located in Ulaanbaatar, the capital of Mongolia.^[1]

[edit] 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.^[1]

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.^[2]