Financial Ecological Environment Quality Evaluation

The Financial Eco-Environment Quality Assessment was a concept first initiated in 2004 by Chinese scholars. Western scholars have done tremendous research in every aspect of the financial sector focusing mainly in Financial Depth, Financial crisis etc. The Mongolian Banking and Financial system focuses more on studding the factors that affect financial industry. My research regarding the Financial Eco-Environment Quality in the Mongolia is thus a new concept that has been studies.The financial industry cannot grow into a financial system service industry by itself, its development has vast influences on the regional political, economic, cultural and legal systems, as well as on their development; and vice versa. This research is meant to study and try to assess the development level of Mongolian banking &financial environment and to study how the development of economy, laws and enterprises impact the financial industry, or rather, to study how they impact each other.This research has quoted and uses some assessment indexes from Chinese scholars and the central bank of China on assessing financial eco-environment quality directly. Based on the principle of scientific comparability, usability and accessibility, 23 indexes were chosen in constructing the model, which are included in four systems: finance, resource, enterprise development and legal. Combining the 23 indexes, the HCA analysis method is used to assess the financial eco-environment quality of Mongolia, including the Macro Economy Environment Development, Financial System Resource Level, Enterprise Development Level and Legal System Environment Outcomes.In this research, the writer concludes that between 2007 and 2012, the legal environment of Mongolia had thrived to make positive progresses, in the men time, the distribution and allocation of financial resources had also developed towards a more reasonable and more balanced direction, which had provided a healthy opportunity for the development of financial eco-environment system and helped it grow in a healthy way. However, the unbalanced and unreasonable structures of social macro-economy and enterprises shaped by historical reasons had not been effectively improved or changed. The macro economy structure is not well diversified(reply heavily on herding, mining, raw material or semi-processed mining material export, main light industrial products import etc.). The development of enterprises had not been able to catch up with the right trends, the pace of enterprise resource diversified distribution and development had not been able to keep up with the development pace of legal environment and financial eco system, which had caused more capital to flow into the more healthy growing and more profitable financial system. This explained why the development level of macro economy and enterprises were not in the same relative development model as that of the financial eco-environmental level.Therefore, in order to maintain a stable, healthy and sustainable development of the financial eco system, effective measures need to be taken to change and reform the structures of Mongolian macro economy and enterprises and a better distribution of their resources, including reforming the proportion of state and private owned enterprises as well as allocation of social resources.