The development of non-bank financial institutions (NBFIs) has been recognised as an important tool for promoting economic growth by enhancing competition in the financial sector and improving the provision of financial services to small and medium sized enterprises where the support of the conventional banking system is more limited.

In Mongolia, NBFIs are permitted to perform a multitude of activities which include lending, factoring, issuance of guarantee, foreign currency exchange, electronic payment, remittance services, trust service, investment into short-term financial instruments, provision of investment and finan