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Law No. 5 dated October 14, 1995
On
The Bank of the Lao PDR
Part I
General Provisions
Article 1 : The function of the Law on the Bank of the Lao PDR.
The Law on the Bank of the Lao PDR determines the characteristics, role, scope of rights and duties , organization and operations of the Bank of the Lao PDR in carrying out its monetary policy, maintaining stability of the value of Kip and contributing to the growth and efficiency of the socio-economic development of the Lao PDR. .
Article 2 : Position of the Bank.
The Bank of the Lao PDR shall be a financial institution of the Government, shall have the equivalent status to Ministry, shall be the Central Bank of the country, shall be juridical person and has the head quarter in Vientiane Capital.
Article 3 : Roles of the Bank.
The Bank of the Lao PDR shall have the following roles:
1. To be secretariat for the Government in the administration of macro finance, currency, credit of Banks within the country.
2. To promote and maintain stability of Kip within and outside of the country; strengthen the efficiency of payments mechanism and solvency of banking system in order to create an efficient operation and transparency of monetary, credit system of the Lao PDR.
3. To promote and facilitate control on the flows of money to serve the socio-economic development plan of the Lao PDR.
Part II
Scope of Rights and Duties of the Bank of the Lao PDR
(New) Article 4 : Scope of Rights of the Bank.
The Bank of the Lao PDR shall have the following rights:
1. Has the sole right to issue notes and coins with the approval of the Government and manages the currency circulation within the country;
2. Administers the macro monetary and shall be the bank of the commercial banks and financial institutions under its supervision and shall be the final lender to such commercial banks and financial institutions with the objective to implement the monetary policy;
3. Implements the policy on foreign currency control and exchange rate;
4. Issues its own bonds with the objective to carry out monetary policy, buys and sells bonds directly with other commercial banks and financial institutions;
5.
authorizes the establishment of branch of the Bank of the Lao PDR, the establishment of local commercial banks foreign commercial banks, financial institutions under its supervision based on the approval of the Government .
(New) Article 5 : Duties of the Bank.
The Bank of the Lao PDR shall have the following duties:
1. Administers-supervises the operation of commercial banks and financial institutions under its supervision to ensure the stability and the development of the banking system and financial institutions ;
2. Maintains and manages the foreign reserves;
3. Collects, compiles and analyzes the economic and financial data, currency and the operations of the banks and financial institutions from the concerned persons and sectors within the country and abroad in order to serve the formulation of the monetary policies and the task of banking sector.
4. Reports and proposes the opinions on the economic, monetary and banking situations to the Government at regular basics;
5. Manages and adjusts the money supply in the circulation in accordance with the approved plan of the Government;
6. Being the agent of the Government in the international financial institutions, to coordinate, cooperate and to sign the financial and monetary agreements with foreign countries and international financial organizations delegated by the Government;
7. Carrying out other duties as provided by laws or according to the Government assignment. |
