ABSTRACT
The State Planning Commission was abolished in September 1990 and a twotier banking system was approved in August 1990 (Milne et al. 1991: 10, 30). It was not until May 1991 that the new banking law was passed, formally recognizing a two-tier banking structure. The Bank of Mongolia was formally made independent of the government. The governor is appointed by parliament to which he is responsible (Boone et al.1997: 112-13).
