Delgermaa Gira, Mongolia

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Board Member & Director International Department, Bank of Mongolia
Transition Economy Program (’97/’98)

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What is your area of specialization and how did you come to work in this area?

I have been working in Mongolia’s banking system for over fourteen years, mostly in managerial positions, in my profession as a banking economist. I decided to become a banker because of my strong wish to contribute to the development of my beautiful country, Mongolia. The democratic revolution occurred in 1990 and Mongolia started its transition from a centrally planned socialist economy to a market economy. Hence, we needed to do a lot of things. I learned from the talk of my mother’s friend, who was a banker at that time, about the importance of the banking system in any economy. So I decided to study in the banking field. I belong to the first generation of Mongolians who have been educated in the market economy.

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What are some of the biggest challenges you face in your work and what has been the most rewarding aspect of your career thus far?

In my career, I have been in charge of projects that involve a high degree of responsibility. To me, the biggest challenges I have faced in my work were actually the most rewarding aspects of my career thus far. As I mentioned, our economy was in a transition period, and lots of adjustments had to be made in our macro economic framework. Since “market economy” itself was a new concept to Mongolia, and a two-tier banking system was just established, bankers who had been educated in the old system had little knowledge about and experience in this new environment. Consequently, lots of banks faced liquidity and solvency problems. During this time, I was a Director of the Banking Division of the Central Bank, responsible for conducting off-site supervision of banks and developing all the regulations related to the banking sector and banking system restructuring policy. We were facing unique challenges almost every day. I am very proud that I was one of the few professional key players at the time, actively involved in successfully implementing, restructuring and reforming the banking system of Mongolia. During this time, I managed and helped many promising young staff members in developing themselves into key players in the Central Bank, as well as in commercial banks. These are the most rewarding aspects for me.

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During your career at the Central Bank of Mongolia, what achievements are you most proud of?

Within the framework of the abovementioned banking system restructuring, I was appointed by the Central Bank, based on an invitation from USAID, to Khan Bank (the former Agricultural Bank of Mongolia) to restore its financial condition and prepare for its announced privatization. I successfully managed the daunting tasks of determining the new credit policy for a large, foundering bank; building up its human resource skills; and restarting moribund lending activity through effective, efficient, close cooperation with experienced foreign advisors and managers. The experience I gained from an internship at Wells Fargo Bank, one of the biggest banks in the USA, helped me a lot. Khan Bank was successfully privatized to a Japanese investor at three times its original bidding price. And now this bank is a top- ranking bank in Mongolia. This was a very unusual accomplishment at that time and has become a widely-used international case study in the resurrection of large, insolvent banks.

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How did your experience at GRIPS/GSPS inform your career?

I cannot imagine that I could have achieved what I have today without the wonderful efforts by the professors and staff of the Graduate School for Policy Science (GSPS, Saitama University). Therefore, I would say that GSPS has enormously contributed not only to my career, but also to the development of Mongolia’s economy and banking system.

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What was the most important thing you learned while here?

I gained a lot of useful knowledge while reading and researching for my thesis and my diploma. My diploma work was about banking system restructuring, which helped me in recommending proper actions to overcome a banking system crisis in Mongolia. Besides that, I believe that the essentials for earning the “Best Banker and Financial Officer Award”, the highest award in the Mongolian banking industry, were learnt while I was studying at GSPS in Japan.

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You are currently member of the Board of Directors (and Director of the International Economic Department) of the Bank of Mongolia. What do you see as the main challenges for Mongolia over the course of the next five to ten years?

Mongolia has a small, open economy that is highly dependent on the mineral sector. However, our export income is very seasonal due to severe winters, while we import most of our consumer goods throughout the year. This creates problems for the state budget, the balance of payment situation and the FX market. So first of all, we need to reform our economic structure to make it less dependent on the mineral sector and to produce import substitution goods. However, this goal will be complicated by the big projects in the mining industry that are being planned for the near future. We need to be careful to avoid “Dutch disease” when implementing those big projects. Like in many other economies, economic growth, generation of new work places, and fair allocation of social welfare are becoming first priorities for our economy.

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Did, the perhaps more lucrative, private sector ever hold any appeal for you?

Yes. While I was working in various managerial positions in the banking system, I realized that strengthening the human capacity of banking system was urgently needed for Mongolia’s development. Therefore, I decided to establish my own consulting and training company. Actually, making the decision to abandon my career, built up by hard work over a long period of time, and to start fresh in a different industry by establishing a new company, was really difficult. However, seeing what could be changed as a result of what I could do for the banking system to which I had devoted myself, eased the process. I just want to encourage the unlimited potential of Mongolia’s banking industry. I dream that the skills of Mongolia’s workforce would lead Asian development. I wish for my company to be the door to this. I am proud that top ranking Mongolian banks are my core and regular customers.

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If you could choose another profession to be in, what would it be?

It would be a university professor or a political leader. I am planning to further my education by studying for a Ph.D., after which I would like to pursue either one of these careers.

What is your fondest memory of your time spent at GRIPS/GSPS?

Whenever I think of GSPS, it always reminds me of discipline. Moreover, I really appreciate the true hearts of the professors (sensei), who devote their time for the success of students. I remember myself being very busy with studying and enjoying my life in Japan. I made many long lasting friendships, including Japanese, and even learned how to bike.

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What do you miss about Japan?

I admire Japanese culture, especially the art of respect and cleanliness. I value opportunities provided to everyone to discover new things almost every day. I discovered not only a financial and cultural new world, but also myself.

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What is your favorite thing to do when you are not working?

Meditation and studying Buddhist philosophy.

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How do you maintain a balance between your work and the rest of your life?

Being a central banker, especially during this global economic crisis, maintaining work-life balance is becoming the hardest part of my daily life. However, I try to spend time with my family as much as possible.

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What advice would you give to current GRIPS students?

Trust in your sensei and university. It is the best school that could prepare you for future leadership. It is a wonderful place to be in your life. That was my actual belief. I am glad that I had this trust when I was studying at GSPS. Eventually, it changed my feeling, living, and studying.