R.Munkhtuya: Khan Bank strives to become a strategic investor in women-led businesses

In the winter of 2020, just days before the new year began—and while the world was grappling with the peak of the COVID-19 pandemic—Khan Bank made a landmark decision that would become a significant milestone in Mongolia’s banking history. The Board of Directors appointed Mrs. Rentsenbat Munkhtuya as the Chief Executive Officer of Khan Bank, making her the first woman to hold this position in the Bank’s history.

For decades, the institution—known for its vast branch network and the largest customer base in the country—had always been led by male executives, both local and international. At a time of uncertainty, her appointment offered both reassurance and inspiration, especially for women across Mongolia. Over the past five years, Mrs. R.Munkhtuya has established herself as a calm and capable leader, and remains the only female CEO among Mongolia’s five systemiйcally important banks. She is recognized not only for her strategic leadership but also for her integrity, humility, and thoughtful approach to problem-solving.

-Khan Bank has introduced several policies and products specifically for women entrepreneurs. Why has this segment become a particular focus?

There’s sometimes a misunderstanding when we talk about gender-focused policies—people assume it means giving women an advantage. That’s not what this is about. We aim to level the playing field. We’re working to create equal access and opportunities by addressing the specific challenges women face in running a business.

For many women entrepreneurs, accessing financing remains a significant challenge. One of the biggest issues is collateral. In many households where a woman is running the business, the property—whether it’s land or housing—is often registered under the husband’s name. This makes it difficult for her to meet the collateral requirements for a loan, even though she’s managing the business herself.

To address this, Khan Bank has introduced more flexible lending terms for women entrepreneurs. While our general policy requires collateral equal to 60% of the loan amount, women entrepreneurs are eligible to apply with just 40%, provided they can verify their ownership or leadership of the business.

We’ve developed three products tailored to the needs of women entrepreneurs. First, we offer a business loan for women entrepreneurs, designed to support both investment and working capital needs. This loan can go up to MNT 1 billion with a repayment period of up to 36 months. The collateral requirement is more relaxed compared to standard business loans, making it more accessible.

Second, we provide a loan aimed at supporting the digital transformation of women-led businesses. This product supports women who are integrating digital tools or advanced technologies—like AI—into their operations. Again, the loan amount can be up to MNT 1 billion over 36 months. What makes this product unique is the performance-based incentive: if the customer completes the digital transformation, they receive a cashback equal to 10% of the total loan amount. And third, we offer a women’s credit card that comes with loyalty benefits. Cardholders can enjoy special discounts and rewards at retail outlets and service providers that are popular among women.

-In your view, who qualifies as a woman entrepreneur? And what criteria does Khan Bank apply when determining this?

At present, Mongolia doesn’t have an official, legal definition of a woman entrepreneur. However, to support and recognize women’s participation in the economy, Khan Bank follows internationally accepted standards when assessing eligibility. According to these criteria, a business qualifies as women-led if women own 51% or more of the business, women own at least 20% of the business and there is at least one woman in executive leadership, or women make up at least 30% of the Board of Directors.

In some countries, these benchmarks are embedded into their Company Laws. The reason so many nations are working to uplift women entrepreneurs is simple: when women are financially empowered, the benefits ripple far beyond the individual. Economically active and financially capable women contribute positively to national growth. Confident women build stronger households. When a woman has access to financial resources, it improves her children’s education, the family’s health, and even daily quality of life—from nutrition to lifestyle choices. Over time, this leads to a more educated, healthier generation.

Mongolian commercial banks launched the “Billion Trees Fund,” and set an ambitious goal to plan  50 million trees 40 hectares in the headwaters of the Selbe River and the Ikh Bayan valley are reforested

-Khan Bank was the first bank in Mongolia to issue a Gender Bond. What was the purpose behind this financial instrument?

The Gender Bond is a dedicated financial product aimed at supporting women entrepreneurs. Khan Bank raised USD 213 million from international sources for this purpose and contributed its own funding as well. The bond totals MNT 30 billion, has a term of 36 months, and offers a 16% annual coupon rate. As an open and transparent financial institution, Khan Bank ensures full transparency regarding its bond information and interest rates, with the bond actively traded on the open market.

So far, we’ve issued women-focused loans totaling MNT 1.4 trillion, and by the end of this year, we aim to increase that to MNT 1.9 trillion. We will continue partnering with international financial institutions to secure more funding going forward.

The Gender Bond was launched with a clear philosophy: to foster mutual support between investors and women entrepreneurs in Mongolia. Khan Bank issued the country’s first Green Bond in both the domestic and international stock markets. Entrepreneurs need access to capital. At the same time, investors are increasingly looking for ways to support others within the framework of their social responsibility. The Gender Bond allows your investment to become the support system for many women entrepreneurs` businesses. Women entrepreneurs like to support each other. Our long-term goal is to become a strategic investor in women-led businesses.

-In your experience, how financially disciplined are women entrepreneurs?

From what I’ve seen, Mongolian women are quite financially disciplined. The rate of overdue loans is extremely low, just around 2 percent. At our bank, as of the end of 2024, we had the lowest non-performing loan ratio in the entire banking sector at 4.0 percent. When you isolate loans taken out by women entrepreneurs, that figure drops even further—between 1.0 and 2.0 percent. Women are very committed to repaying their loans on time. That’s why we’re actively working to expand our financial support for women-led businesses.

-Khan Bank has long been recognized as a leader in advancing the Sustainable Development Goals. What progress have you made in that field?

Since 2018, we’ve aligned all our operations with the 17 UN Sustainable Development Goals. In 2020, we officially approved an internal Sustainable Development Policy, and as part of our brand refreshment, “Sustainability is the future” was defined as one of our values. By the end of 2024, our green loan portfolio reached MNT 712 billion—accounting for 52.6 percent of the total green loan portfolio of the entire domestic banking sector. Our target is to raise the share of green loans to 10 percent of our total portfolio by the end of 2025.

Our 2024–2026 mid-term business plan is also centered around sustainable development and sustainable financing. It’s the first time we’ve developed a medium-term sustainability strategy, with a special focus on supporting successful sustainable agriculture business. In other words, we’re planning to implement various initiatives aimed to support meat, dairy, grains, animal feed, wool, cashmere, leather, and hides businesses through a cluster-based approach. As a leading commercial bank, we’ve also established 24 Business Centers in 21 provinces, and 18 more in Ulaanbaatar that offer comprehensive services for entrepreneurs and producers across the country. We’ve established these centers to discover the local business potential of each region and develop corresponding products.

While our general policy requires collateral equal to 60% of the loan amount, women entrepreneurs are eligible to apply with just 40%

-What proportion of Khan Bank’s workforce and leadership team are women?

We currently have about 4,500 full-time employees, and that number grows to around 6,000 if you include part-time employees as well as those on maternity leave. Of that, 69 percent are women. In terms of the leadership team, we have three tiers of management across the bank. That includes 550 branch directors and 630 managers when you count headquarters. About 60 percent of our middle managers are women, and 38 percent of our top executives are also women.

-As a female CEO, how do you view the idea of leadership from a gender perspective?

To be honest, when it comes to leading a bank, I don’t believe there’s a huge difference between male and female leaders. After all, leadership is not about physical strength—it’s about management and strategy. Though, I do think women leaders have an edge in noticing the small details—how seemingly minor things can have a major impact. Women leaders tend to be highly aware of how an employee’s job satisfaction or family stability can affect their performance. That understanding helps build strong teams capable of delivering excellent results.

-You’ve also been chosen as a National Ambassador for UNICEF Mongolia, and the bank itself is known for its strong social commitment. Could you tell us more about that?

Yes, I’m currently serving as a National Ambassador for UNICEF Mongolia. Since 2024, we’ve been working together on two major initiatives. One is the “A Cup of Milk for Every Child” project, which supports local dairy farmers, herders, and stakeholders within milk supply clusters.

The other is a project to establish bagh schools in remote rural areas. We’re partnering with the Ministry of Education and UNICEF to improve educational access for children of herder families and border patrol officers living in isolated soums and baghs. This year, we’re launching schools in remote areas and baghs, which will allow over 600 children aged 2 to 10 to study closer to home.

Mongolian commercial banks launched the “Billion Trees Fund,” and set an ambitious goal to plant 50 million trees. Through our Khan Bank Foundation, we’ve already reforested 40 hectares in the headwaters of the Selbe River and the Ikh Bayan valley—critical areas for Ulaanbaatar’s drinking water supply. In 2025, we plan to plant 1.2 million trees across 500 hectares with the support of partner organizations.

-Finally, could you share some key financial figures of the Khan Bank from the first half of this year?

Certainly. As of June 30, 2025, Khan Bank’s total assets reached MNT 21 trillion, and our loan portfolio stood at MNT 13.7 trillion. We serve 589,000 borrowers and 2.9 million clients. Our total deposits have reached MNT 18 trillion, and we now have 33,000 shareholders. The bank’s total market valuation is MNT 2.4 trillion.

In 2024, we paid MNT 365.5 billion in taxes—that’s about a billion a day. This year, we expect that figure to grow to MNT 400 billion. It shows how our customers’ businesses are thriving and growing, and we’re genuinely proud to be part of their success.