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Type: Decision
Responsible Agency: Bank of the Lao PDR
Issuing Date: 2015-07-21
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Lao People’s Democratic Republic
Peace Independence Democracy Unity Prosperity
__________________
Bank of the Lao PDR No. 529/BOL
Vientiane Capital, 21 JUL 2015
Decision
On the Determination of Interest Rates of Commercial Banks
- Pursuant to the Law on the Bank of the Lao PDR, No. 05/NA, Dated 14 October
1999;
- Pursuant to the Law on Commercial Banks, No. 03/NA, Dated 26 December 2006;
- Pursuant to the Decision at the General Meeting of the Board of Directors of the Bank
of the Lao PDR on 16 July 2015; and - Based on the studies and proposals of the relevant Departments.
The Governor of the Bank of the Lao PDR issues the following Decision:
Article 1: Commercial banks shall determine 12 month Lao Kip deposit interest rates
using the inflation rate of the previous year plus 2%.
Article 2: Commercial banks shall determine the difference between deposit-loan
interest rates on a weighted average not exceeding 4%.
Article 3: The Currency Policy Department of the Bank of the Lao PDR shall notify the average inflation rate of the previous year, Lao Kip savings accounts interest rates; and 3 month, 6 month, 12 month and 24 month fixed-term savings account interest rates; and issue Guidelines on differences between deposit- loan interest rates as provided in Article 2 of this Decision to commercial banks as a reference for implementation.
Article 4: Lao Kip deposit and loan interest rates implemented prior to 3 August 2015 shall be implemented in accordance with their existing conditions until the completion of their terms.
Article 5: The Currency Policy Department, the Commercial Banks Management Department, all regional branches of the Bank of the Lao PDR and commercial banks shall strictly implement this Decision in accordance with their duties.
Article 6: This Decision is effective from 3 August 2015 onwards. All previous provisions, regulations and instructions of the Bank of the Lao PDR which conflict with this Decision are hereby repealed.
Governor of the Bank of the Lao PDR
[signature and seal]
Dr. Somphaw PHAISIT
Download English:Decision On the Determination of Interest Rates of Commercial Banks No. 529/BOL, dated 21 July 2015
Download Lao:Decision On the Determination of Interest Rates of Commercial Banks No. 529/BOL, dated 21 July 2015
List Measures Related to Legal Documents
| Name | Description | Status |
|---|---|---|
| Business Operation License Requirement for the operation of currency exchange business. | Any entity engaged in the foreign currency exchange business is required to obtain a business operation license from the BOL. | Active |
| Fee for application for currency exchange business operating license. | The following fees are applicable for a business operation license are: Business Operation License application form is LAK 100,000. | Active |
| Fee for issuance of business operation license for currency exchange business operating license. | The fee for issuance of business operation license is 0.05% of registered capital, but not exceeding LAK 1,500,000. | Active |
| Fee for renewal of business operation license for currency exchange business operating license. | The fee for renewal of the business operation license is LAK 500,000. | Active |
| Licensing requirements for the establishment of the currency exchange business. | The following are the requirements for a foreign currency exchange business operation license: 1. Being a Lao citizen (23 years up), or legal entity engaged in related business activities in the Lao PDR: 2. Having knowledge or relevant financial or business experience; 3. Have a minimum registered capital; 4. Having a suitable place to operate the exchange business; 5. Having sufficient equipment relating to the exchange business; 6. Not having been sentenced or under prosecution by a court for any offences; and 7. Not having been subject to the revocation of a foreign currency exchange business license. | Active |
| Minimum registered capital requirement for the operation of a currency exchange business. | Any entity intending to operate foreign currency exchange business must have a registered capital of at least LAK 1,000,000,000. | Active |
| Registration requirements to operate the exchange business. | Lao citizens and Lao legal entiies engaged in related business activities wishing to conduct foreign currency exchange business are required to register an enterprise with the Ministry of Industry and Commerce and obtain a Business Operation License from the BOL. | Active |
| Renewal business operation license requirement | Exchange Business Operation License is valid for one year and must be renewed yearly | Active |
| Requirement to exchange through LAK currency. | Each sale and purchase of currency must be carried out through LAK currency and must have one receipt to the customer and one receipt to be kept by exchange shop. | Active |
| Requirement to mention information in the receipt. | The date, name, address of customer, amount of exchange, currency, type of bank note, exchange rate and money amount received from exchange must be noted in the receipt for each currency exchange. | Active |
| Requirement to obtain approval to use receipt | Currency exchange business operators must obtain an approval of the currency exchange receipt from the BOL and consent from the Tax Department | Active |
| Requirement to report daily regarding the daily sale and purchase of currency. | The report regarding the daily sale and purchase of currency must be submitted daily to the Money Policy Department or branches of BOL in the provinces before 16:00 PM | Active |
| Requirement to report high value transactions | Entities engaging in exchange business activitiy must report high value sale and purchase of currency or transactions suspected to be money laundering or financing terrorism to the Anti-Money Laundering Intelligence Office. | Active |
| Requirement to report regarding the daily exchange rate. | The report regarding the exchange rate must be submitted daily to the Money Policy Department or branches of BOL in the provinces before 10:00 AM | Active |