Banking Sector: Mining Sector Pick Up Crucial

The Mongolian banking sector has been hit hard by the global financial crisis, with the rapid deterioration of the real economy plunging asset growth levels. Profitability and expansion potential will continue to be significantly hampered by the slow macroeconomic recovery in Europe, Russia and the United States through to 2010. Despite the short-term systemic risks, we maintain that the sector will be in a positive position to benefit from the rapid economic expansion we forecast for the country over the long term. We stress though, that this growth potential will be contingent upon the government's finalising a benchmark mining agreement for the Oyu Tolgoi copper deposit.

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