A PROJECT IS UNDERWAY TO DEVELOP MODELS WITH FINANCIAL SECTOR AND THE ELEMENTS OF MACROPRUDENTIAL POLICY

10/13/2021

Strengthening Fiscal and Financial Stability Project aims to improve the financial stability of Mongolia by enhancing the capacity of the Bank of Mongolia with technical assistance and a cascade of planned measures to achieve this. Within the framework of the project, the Monetary Policy Department of the Bank of Mongolia, in cooperation with OGResearch from the Czech Republic, is in the final stage of successfully implementing a project called “Developing  models with financial sector and elements of macroprudential policy

As a result of this project, there would be strengthened capacity of developing an open economy semi-structural and Dynamic Stochastic General Equilibrium (DSGE) models with the financial sector and conducting a variety of policy simulations. Furthermore, it will support the policy decision-making process at the Central bank by expanding monetary and macro-prudential policy analysis through the interrelationship between the real economy and the financial sector; and improving the quality of policy impact analysis.

Successful implementation of the project will help to determine the interrelationships between the real and financial sectors and the impact of the external sector in detail, to analyze the effect of monetary and macroeconomic policies on the financial sector and the economy, to conduct systemic risk analysis & stress testing, and to support the policy decision-making process, which is essential to ensure the stability of the financial sector.

This project is unique because it is the first time that the Bank of Mongolia is developing a structural model with financial sector that reflects specific characters in financial and real sectors of the economy of Mongolia and defines parameters capturing macro-financial interdependence.

Since the start of the project, the international consultant team has successfully developed a macro-financial semi-structural model that reflects indicators from the financial sector or the banking sector and has organized 2 online trainings for Bank of Mongolia staff. In addition, the semi-structural model was extended through the financial sector block, and its calibration and simulation analysis were presented to the management team of the Bank of Mongolia. As a result, per relevant suggestions and recommendations,  the improvements and calibration on the model have been completed.

The next major part of the project, the structural Dynamic Stochastic General Equilibrium (DSGE) model, is underway, and the third online training for the Bank of Mongolia staff is planned to undertake in October-November 2021. After successfully conducted this training, a Dynamic Stochastic General Equilibrium (DSGE) model with an open economy and the financial sector will be developed with full parameters of the model will be defined.


NEWS
WORLD BANK WORKING GROUP MET WITH PIU AND IMPLEMENTING ORGANIZATIONS REGARDING THE COMPLETION REPORT OF THE STRENGTHENING GOVERNANCE IN MONGOLIA PROJECT

4/3/2023

Concerning the Strengthening Governance in Mongolia project, which was completed on February 28, 2023, the World Bank working group to develop the project completion report had an official meeting with Project Implementation Unit (PIU) and implementing organizations on March 30, 2023. The purpose of the working group meeting is to review the implementation of the project, the results achieved, and the fulfillment of the project indicators.

PERFORMANCE BASED FINANCING: INSPIRING NEW APPROACHES TO PUBLIC FINANCIAL MANAGEMENT IN HEALTH AND EDUCATION

3/23/2023

Performance based financing (PBF) links funds or payments to service providers to results achieved and gives them considerable autonomy in the use of these funds. The strategic approach is appealing to many individuals and organizations as it motivates them to perform better and channels resources directly to the frontlines. This in turn fosters greater accountability. Using this approach has been popular in different sectors with some promising results emerging. 

AN INTEGRATED SYSTEM FOR RESULTS-BASED MEDIUM-TERM BUDGET PLANNING: IN ACHIEVING THE GOALS OF IMPROVING BUDGET PLANNING, BUDGET EFFICIENCY AND PROGRAM OUTCOME.

3/7/2023

    Under the scope of improving public financial management, Mongolia is aiming to introduce result-oriented medium-term budgeting, transitioning from the traditional input-based budgeting. This goal is aligned with development policy of Mongolia to shift from medium-term fiscal framework (MTFF) to medium-term expenditure framework (MTEF).

The MOF is entering the new phase of PFM Reform Action Plan

2/28/2023

Within the framework of the European Union financed, World Bank managed “Strengthening Governance in Mongolia” project, the Ministry of Finance, in compliance with the “Sustainable Development Vision 2030” and the “Action Program of the Government of Mongolia for 2016-2020”, has approved and implemented the Public Financial Management (PFM) Reform Strategy and the Action Plan for 2018-2022. The overarching objective of the strategy was to improve governance and achieve effective resource allocation and efficient public service delivery. The implementation status of the PFM Action Plan is indicated as “Certain results have been achieved” at the rate of 85 percent.

LAUNCHED BETA VERSION OF THE REDEVELOPED GLASS ACCOUNT PORTAL

1/20/2023

The Ministry of Finance Mongolia has developed and successfully launched the new version of the Glass Account Portal in 2023 within the framework of the Strengthening Governance in Mongolia Project jointly implemented by the EU and the World bank.

New systems and services are added in the Intermediate service platform for fiscal and financial systems

1/11/2023

The Ministry of Finance Mongolia has developed and successfully launched the Intermediate Service Platform (ISP) in 2022 within the framework of the Strengthening Governance in Mongolia Project. The main purpose of the system is to provide a possibility of information /web services/ exchange between the independent systems of the Ministry of Finance and other organizations in a easy and flexible way. In addition, it is solving the issues of overlapping connections and development between many information systems and organizations, transferring them to a unified standard, making it has no complexity, and more secure.

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