Paper Title
IMPACT OF COVID-19 PANDEMIC ON BANKING SECTOR PERFORMANCE

Abstract
At the session of the Parliament of Mongolia on November 18, 2021, the government discussed and approved the draft of the main direction of the monetary policy to be followed in 2022. Inflation measured by the consumer price index will be stabilized in the range of 6±2% in 2022-2024 as part of the monetary policy objective. It will also ensure sustainable credit growth that supports economic recovery and medium-term stability to overcome the challenges of the Covid-19 pandemic. Appropriate policies to prevent the accumulation of risk in the banking system will be implemented in combination with monetary policy. The credit balance of the banking sector, which was stagnant throughout the previous year, began to grow rapidly at the beginning of 2021. Starting from March 2021, the loan balance has increased to about 20 trillion within a few months, increasing by more than 10 percent. However, the rate of non-performing loans in the banking sector is not decreasing. Especially since the beginning of the Covid-19 epidemic, the payment of loans has deteriorated significantly.