Norihiko Kato, recently appointed Acting CEO of Khan Bank, describes in this interview how the bank plans to grow, in sync with the Mongolian economy. Please begin by telling us something about your career.
I was appointed Acting CEO of Khan Bank last November, but this is not my first time here. I worked with Khan Bank for 8 months in 2009 and 2010, first as an advisor then as managing director, wholesale banking. That was a good experience. My career started with Bank of Tokyo, Japan, where I worked for 28 years, in places like Tokyo, New York, Amsterdam and Bahrain. I am happy to be here and see it is a great opportunity.
How did you find Mongolia on your earlier stint?
I arrived on 27 November 2009. It was freezing cold. Even though I had expected this, it was quite a new experience for me, the weather. I soon got to know the city and found it very energetic. At work, the young people were eager to learn and ready to work hard. This was particularly impressive, this faith of young Mongolians that the future of this country was bright.
How does Khan Bank distinguish itself from the other commercial banks operating in Mongolia?
We have the largest network in the country, with 500 branch offices, all of which are 100 per cent online. No one else has this. We also have the largest capital base, and are the most profitable bank. I’d say these are our major distinctions.
Are you planning on further expansion?
Yes, of course. The banking industry is an important part of the economic infrastructure of any country and must grow along with the national economy. With the largest network in the country and with the most funds available, Khan Bank has a special role to play in supporting the growth of the Mongolian economy. There is enough scope for all in the banking sector to grow.
Last year, Khan Bank organized a “Thank you” campaign on its 20th anniversary. This was very popular. You have any such plans for customers this year?
We have decided to continue with the “Thank you” campaign to express our appreciation that so many Mongolians do business with us and helped us to achieve good financial results last year. This year’s super winner would get a chance to visit London to watch the Olympic Games. We shall continue to have this kind of campaign as we promote our various specific products for improved customer convenience such as internet banking, mobile banking, the card business etc. We want to make our products more popular and to provide better services to our customers.
With another global crisis looming, will Mongolia again see banks going bankrupt like they did in 2008?
True that the banking industry experienced difficult times in 2008, but since then banks in Mongolia have taken several precautionary measures. Regulation is now stricter, and a liquidity ratio has to be observed. Our bank satisfies all of these requirements and we foresee no trouble. The experience of 2008 taught all banks to be more prudent in following credit terms and portfolio management. I believe banks’ credit portfolio management system has improved. As for our bank, we have solid credit committees, and our risk officers are well qualified for their risk control assignment.
With the mining industry developing rapidly in Mongolia, what kinds of services and support does Khan Bank provide to mining companies?
Mining is one of the most important sectors for us. Of course, we offer credit to miners, but our aim is to go beyond mining and contribute to the growth and development of the supply chain of mining related industries. As we have this well spread out network, there will be a Khan Bank branch office near any mining site, ready to offer all help in the economic activities taking place there. Khan Bank would love to support this whole supply chain related to mining in myriad ways.
And you think Khan Bank will achieve this goal?
Yes, our success so far makes us confident. Last year we made significant growth. Our total assets reached MNT2.2 trillion, our deposits amounted to about MNT1.9 trillion and the number of customers reached 1.8 million. We were happy to receive some awards. Among them was one awarded by the Mongolian Chamber of Commerce and Industry for being one of the top 10 companies of the country. We also received the Golden Award of the Asian Pacific Chamber of Commerce. We made significant achievements throughout the year. I’d like to especially emphasize the facts of our network and our diversified portfolio. With 500 branches throughout the country Khan Bank is never far from anyone. Our branches are 100 per cent online with enhanced banking services and security. Also we have very diversified portfolio from retail to corporate side. And as I mentioned, the mining industry needs suppliers and service providers like food caterers or even barbers. We want to be everybody’s bank.