KPL
Lawmakers are considering significant amendments to the Law on the Bank of the Lao PDR, as Acting Governor Vathana Dalaloy presented the proposed changes during the 8th Ordinary Session of the 9th National Assembly.
(KPL) Lawmakers are considering significant amendments to the Law on the Bank of the Lao PDR, as Acting Governor Vathana Dalaloy presented the proposed changes during the 8th Ordinary Session of the 9th National Assembly.
The revisions aim to modernize banking legislation in line with the nation's evolving economic landscape.
The proposed amendments expand the law to 10 parts, 10 chapters, and 89 articles, up from the current 10 parts, 7 chapters, and 79 articles. They include revisions to 36 articles, the addition of 14 new articles, the merging of three articles, and the removal of Article 48, which addressed government-guaranteed loans for financial institutions borrowing abroad.
First enacted in 1990, the law has undergone revisions in 1995, 1999, and 2018. The latest update seeks to enhance governance, auditing, and monetary policy implementation while strengthening financial stability and modernizing payment systems.
Ms. Vathana highlighted persistent challenges, including limited public awareness of proper care for Lao kip banknotes, which impacts their quality and longevity.
She also pointed out the need for legal authority to regulate digital currencies. The amendments aim to address these issues by establishing a stronger legal framework to support monetary stability, strengthen financial institutions, and facilitate regional and international integration.
Beyond addressing current challenges, the revisions emphasize modernization. They propose improving the quality and security of payment systems to better position Laos for global financial integration, while refining policy tools to support sustainable economic growth.
The National Assembly’s input will shape the final version of the law, ensuring it aligns with the country’s development goals and financial needs. Lawmakers are expected to deliberate further on the draft, marking a crucial step toward enhancing Laos' financial framework and equipping the central bank to navigate contemporary challenges while fostering economic stability and growth.
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