The Mongolian Bankers Association (MBA) released banking and financial sector data for the first half of 2020. Due to COVID-19 lockdown measures, the economy shrank by 9.7 percent during the reporting period. The economic contraction also affected the banking sector, by reducing bank lending by 11 percent. Current account balances dropped by nine percent and savings collateral loans decreased by three percent compared to the same period in 2019. Foreign currency savings increased and accounted for 29 percent of all savings, due to people converting MNT savings into foreign currency as an economic slowdown was anticipated at the end of 2019, a temporary halt in exports, and the parliamentary elections. CEO of the Mongolian Bankers Association L. Amar noted that the central bank's monetary policy would affect the last quarter of 2020, increasing new loans, mostly corporate MNT loans. Following Parliament's approval to reduce loan interest rates, commercial banks have started working to reduce operational expenses and create shared infrastructure. As a result, loan interest rates are expected to drop by one percentage point a year over the next four years.