Decree on Microfinance Institutions
法令——关于小额信贷机构
ດຳລັດ ວ່າດ້ວຍ ສະຖາບັນການເງິນຈຸລະພາກ
Summary
This decree issued by the Government stipulates principles, regulations, and measures for establishment, management, operation, and supervision of microfinance institutions (including deposit-taking, non-deposit-taking, and microfinance projects), covering operating licenses, organizational structure, soundness maintenance, accounting and auditing, early intervention and crisis management, dissolution and liquidation, prohibited acts, and management inspection, implemented by the Bank of the Lao PDR, replacing Decree No. 460/PM dated 2012.
Articles
Article 1
Purpose. This Law stipulates principles, regulations, and measures regarding the establishment, management, operation, and supervision of microfinance institutions to ensure their correct and stable operation, aiming to create conditions for the broad access of people of all ethnic groups to financial services, and to contribute to poverty alleviation and national socio-economic development.
Article 2
Microfinance Institutions. Microfinance institutions refer to financial institutions engaged in microfinance financial business, including deposit-taking microfinance institutions, non-deposit-taking microfinance institutions, and microfinance projects licensed to operate microfinance financial business in accordance with this Decree.
Article 3
Interpretation of terms. The terms used in this Decree have the following meanings: 1. Microfinance refers to the provision of financial services in the form of accepting deposits and granting loans to the poor, low-income families, and small livelihood businesses, as well as other financial services permitted by the Bank of the Lao PDR; 2. Deposit-taking microfinance institution refers to a financial institution that generally collects deposits from the public, grants micro-loans, and provides other financial services as permitted by the Bank of the Lao PDR; 3. Non-deposit-taking microfinance institution refers to a financial institution that grants micro-loans and provides other financial services as permitted by the Bank of the Lao PDR; 4. Microfinance project refers to village development funds, village banks, or other funds established by groups of people, legal entities, or organizations, with contributions from individuals or organizations to conduct microfinance operations (such as collecting deposits, granting loans, and providing other financial services); 6. Related party refers to management personnel, major shareholders, individuals related to management personnel or major shareholders by marriage, direct lineage, or commercial interest; 7. Management personnel refers to members of the board of directors, internal audit committee, executive committee, departmental committee, and branch committee of a microfinance institution; 8. Major shareholder refers to an individual or legal entity holding more than ten percent of the ordinary shares in a microfinance institution.
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