Regulatory Alerts2016-01-15
Added · Updated
Decision On Licensing of Commercial Banks and Banks' Branches
The Bank of the Lao PDR establishes rules for licensing commercial banks and branches, requiring approval for establishment and mandating that existing banks hold more than 50% of voting shares in new commercial banks. Applicants must meet specific financial criteria, including assets of at least LAK 40,000 billion for banks, and submit detailed documentation regarding shareholding, funds, and management fitness. The decision sets a 90-day review period for applications and a 180-day validity for preliminary licenses, which can be extended twice by 90 days, before a permanent license is issued upon meeting readiness conditions. Domestic bank branches require prior approval with a 60-day review period, while service units only require notification, though they are prohibited from approving credit facilities.
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