TenGer Financial Group and XacBank Enhance Corporate Governance with the Help of IFC
TenGer Financial Group LLC (TenGer) and its flagship, XacBank, have entered into an agreement with the International Finance Corporation (IFC) on provision of corporate governance advisory services. Under the agreement, an IFC team of highly experienced consultants will determine the present level of corporate governance at TenGer and XacBank compared with the best internal practices. They will identify any changes required and recommend improvements in corporate governance procedures and policies to bring the company to an internationally superior level of practice.
“The Mongolian economy is set to grow exponentially in the coming decades. This growth is driven by the wealth of its natural resources. Whether we will be able to capitalize on it fully or let it curse our future will largely depend on the decisions which we are taking as individuals, companies, as well as a government. Corporate governance should be noted on par with the state governance in terms of its importance for economic growth of the country,” said Ganhuyag Chuluun, Chief Executive of TenGer. “XacBank invested a lot to build its internal systems over the past 12 years. We are proud of our achievements in the past but we are still eager to do even more, and this agreement is just a small illustration of our will.”
“The Mongolia Corporate Governance project is primarily aimed at improving the internal corporate governance practices in Mongolian companies and banks, which will serve to increase the attractiveness of Mongolian entities for lending and investment and consequently facilitate more liquidity in the market. We welcome and admire the strong commitment of TenGer and XacBank to develop and their understanding of the need to do better. The aim of the Improvement Program is to help TenGer Financial Group and XacBank to bring their corporate governance into alignment with international best practice,” stated Sergii Tryputen, IFC Corporate Governance Program Manager.
TenGer Financial Group is a family of companies, namely XacBank, XacLeasing, XacSecurity, and Horus Nomadic Solutions, built to provide banking, leasing, security and technology related product development. In 2009, TenGer launched its international expansion with a pilot equity investment in Mol Bulak Finance microcredit company of the Kyrgyz Republic, and has been working to invest in financial institutions in Central Asia, Russia and China to build an international group of companies primarily engaged in delivery of financial services.
TenGer is owned by a group of local and international investors including ECM, BlueOrchard PEF, IFC, EBRD, Mercy Corps, Triodos Bank Group and local NGOs. For more information visit: www.tengerfg.mn.
XacBank is one of the largest banks in Mongolia providing inclusive and innovative financial products and services throughout the country with a network of 76 branches. For more information visit: www.xacbank.mn.
IFC’s Mongolia Corporate Governance Project focuses on implementing sound corporate governance practices in Mongolia by introducing international corporate governance standards in an effective and sustainable way. Globally, IFC corporate governance programs have helped client companies and banks in transitional economies attract more than $2.7 billion of additional investment which they would attribute to their improved corporate governance practices. For more information visit: www.ifc.org.