The Bank of the Lao has announced the official launch of the Rural Development Bank, created by transforming the former Policy Bank into a specialised commercial bank aimed at supporting rural development and sustainable poverty reduction in line with national economic objectives, including the 2026 target to exit least developed country status. The conversion covers changes to the bank’s name, location and mandate, alongside updates to internal rules, governance and legal arrangements, organisational structure and staffing, and its financial position and operating model to broaden activities, improve flexibility and increase self-sustainability. The bank’s stated operating focus includes providing low-interest credit for production, trade and services, pairing lending with borrower training and technical support, expanding inclusive access through modern products and services and system connectivity with regional and international banks, mobilising deposits and other low-cost funding sources, and promoting rural value-added production and market linkages; management also presented a strategy through 2030 and a vision through 2035.
Bank of the Lao 2025-12-10
Bank of the Lao formally launches the Rural Development Bank following conversion of the former Policy Bank
The Bank of the Lao has launched the Rural Development Bank, transforming the former Policy Bank into a specialised commercial bank to support rural development and poverty reduction, aligning with national economic goals. The bank's mandate includes providing low-interest credit, borrower training, and expanding access to modern financial services, with a strategy extending to 2030 and a vision through 2035. Changes include updates to governance, legal arrangements, and its operating model to enhance flexibility and self-sustainability.