The Bank of the Lao P.D.R.’s Governor briefed the National Assembly’s 10th ordinary session of the IX legislature and answered questions on remediation of findings from the 2021–2025 five-year audit and the annual audit work, including follow-up expectations for commercial banks. The update emphasised progress on corrective measures and signalled stricter enforcement where banks breach credit provision limits. Actions reported as completed or underway included issuing guidance on the management and use of the Production Expansion Fund and pushing commercial banks to establish and strengthen internal rules to close control gaps and prevent misconduct. The central bank also highlighted ongoing coordination to clear outstanding audit issues and continued monitoring to support implementation by relevant parties, alongside efforts to pursue recovery of past losses. On cases where some commercial banks have exceeded prescribed lending limits, the Bank of the Lao P.D.R. noted that warnings and fines had not fully deterred breaches and indicated it will apply tougher measures, require affected banks to prepare plans to increase registered capital, and continue monitoring repayment performance for projects that have benefited from forbearance.
Bank of the Lao 2025-11-17
Bank of the Lao P.D.R. outlines audit remediation and tighter action on banks exceeding lending limits
The Bank of the Lao P.D.R. updated the National Assembly on progress addressing the 2021–2025 audit findings, highlighting stricter enforcement for banks breaching credit limits. Measures include guidance on the Production Expansion Fund, strengthening internal controls, and resolving audit issues. The central bank plans tougher actions against banks exceeding lending limits, requiring capital increase plans and monitoring repayment performance.