The Bank of the Lao PDR convened the first 2026 meeting of its Financial Stability Committee, reviewing implementation of prior decisions and the management of financial stability in 2025 through early 2026, and setting priorities for 2026. The committee assessed the financial sector as broadly stable and able to mobilize domestic and foreign funding, while flagging the need to strengthen oversight and risk management amid difficult economic conditions and spillovers from international conflicts. Agreed priorities include raising supervisory practices to international standards and tightening relevant legislation; tasking the Commercial Bank Supervision Department with studying how to designate systemically important commercial banks to inform tailored supervisory conditions; and urging financial institutions to strengthen monitoring of borrowers and prepare plans to mitigate credit, liquidity and other risks. The committee also called for continued, systematic resolution of weak financial institutions, improvements to payment-system management and deposit-protection operations, and stronger information-technology security to support continuous and stable financial and payment services. The committee endorsed its work plan for the next quarter.
Bank of the Lao 2026-03-20
Bank of the Lao PDR Financial Stability Committee sets 2026 agenda including work to designate systemically important banks
The Bank of the Lao PDR's Financial Stability Committee reviewed financial stability from 2025 to early 2026, finding the sector stable but highlighting the need for enhanced oversight amid challenging economic conditions. Priorities include aligning supervisory practices with international standards, designating systemically important banks, and urging financial institutions to bolster risk management. The committee also emphasized resolving weak institutions, improving payment systems, and strengthening IT security.