The Bank of the Lao PDR’s Financial Stability Committee assessed financial institutions as broadly stable in the third quarter of 2026, while directing supervisors and firms to strengthen safeguards against risks arising from difficult economic conditions and international conflicts. Supervisors are to move oversight toward international standards and update relevant regulations, while financial institutions must tighten risk management and monitor borrowers more closely. The committee reviewed risks across financial institutions, payment systems and deposit protection, as well as progress in developing a methodology and collecting data to designate systemically important banks. It also considered financial scams and foreign currency trading on the Lao Foreign Exchange market and its oversight mechanism. The work continues the committee’s 2026 agenda of strengthening supervision and identifying systemically important institutions.
Bank of the Lao PDR directs tighter risk oversight as financial institutions remain broadly stable
The Bank of the Lao PDR’s Financial Stability Committee found financial institutions broadly stable but called for stronger supervision, risk management and borrower monitoring. It also reviewed work to designate systemically important banks, alongside payment, deposit protection, scam and foreign exchange market risks.