Lao People's Democratic Republic
Peace Independence Democracy Unity Prosperity
Date: 22 March 2000
DECREE OF THE PRESIDENT OF THE LAO
PEOPLE'S DEMOCRATIC REPUBLIC ON COMMERCIAL BANKS
Pursuant to Part V, Article 53.2 of the constitution of Lao PDR;
Pursuant to Law No. 05/NA of 14 October 1995 on the bank of Lao PDR and its amendment No. 05/NA of 14 October 1999;
Referring to the proposal of the National Assembly Standing Committee on 17 February 2000;
The President of the People's Damocratic Republic issues this Decree on the improvement of the Presidential Decree on Commercial Banks. This Precidential Decree modifies and adds certain articles as follows:
Article 1. Purposes of the Presidential Decree Commercial Banks
The Presidential Decree on Commercial Banks defines the position, role, authority and duties, organization and operations of commercial banks to ensure the realization of the monetary policy, the supply of the funds for production and services, the adjustment of monetary mass in society, the external relations in terms of foreign currency, and contribution to the socio-economice development of Lao PDR.
New Article 2. Commercial Banks
Commercial banks are financial institutions carrying out banking business under the supervition of the Bank of the Lao PDR, and include general commercial banks and specialized commercial banks.
General commercial banks are financial institutions with the status of juristic entities carrying out the business of deposits, loans, foreign exchange, investment in commercial and quasi-money instruments, domestic and foreign financial services.
Specialized commercial banks are financial institutions holding the status of juristic entities and carrying out sector-specific business or activities in a sector mentioned in the above paragraph, such as development banks, investment banks, saving banks, import-export banks, agricultural promotion banks and others.
New Article 3. Legal Status
Commercial Banks are juristic entities and have equal rights before the law in carrying out their operations according to their respective roles in extending
competitive services to their customers in compliance with the laws of the Lao PDR.
New Article 4. Agency or Representative Office of Commercial Banks
Licensed agencies or representative offices of foreign commercial banks in the Lao PRD may only contact foreign commercial banks or financial institutions which they represent and may not conduct banking operations similar to banking business in Lao PDR.