Planet Finance Rating Report on XAC Bank

XacBank in Mongolia, a former UNCDF/UNDP microfinance project, received a rating of A- from Planet Finance

XAC made its first loan in 1998 as a MicroStart project, a global partnership between UNCDF and UNDP. With initial funding of U.S.$1 Million, XAC now has total assets of $19.4 million, and is a leading microfinance bank in Mongolia, driving development of the sector.

XacBank was founded in 2002 by the merger of two non-bank financial institutions, Govin Eklel managed by Mercy Corps with funding from USAID and the USDA, and X.A.C. Golden Fund for Development, owned by six NGOs with funding from the United Nations Development Program (UNDP) and techical assistance from the United Nations Capital Development Fund (UNCDF). XacBank provides a range of flexible financial services suited to small and micro- businesses as well as individuals throughout Mongolia through its 32 branch offices. Since its formation, XacBank has disbursed more than 50,900 loans totaling over US$28.5 million. Mercy Corps is currently the largest shareholder in XacBank together with six Mongolian NGO’s and Tuushin Group, a local private company. The United States Agency for International Development (USAID) has in part supported XacBank’s activities through a technical assistance grant.

The mission of XacBank is first, to contribute to the socio-economic development of Mongolia by providing access to comprehensive financial services to all citizens and legal entities, including those who are normally excluded, e.g. low-income and remote rural households. Second, but equally important, to maximize the value of shareholders’ investment, while creating a profitable and sustainable financial institution.

View the full report from Planet Finance on XacBank: [ pdf ]