Agreement on Increasing Registered Capital and Investment Funds of Commercial Banks and Foreign Commercial Bank Branches
关于增加商业银行及外国商业银行分行注册资本和投资资金的协议
ຂໍ້ຕົກລົງວ່າດ້ວຍ ການເພີ່ມທຶນຈົດທະບຽນ ແລະ ເງິນລົງທຶນຂອງທະນາຄານທຸລະກິດ ແລະ ສາຂາທະນາຄານທຸລະກິດຕ່າງປະເທດ
Summary
This regulation requires commercial banks and foreign branches in Laos to increase capital to prescribed minimum amounts within ten years starting from 2025, specifying capital increase forms, accounting rules, and supervisory enforcement bodies.
Articles
Article ມາດຕາ 1
Article 2 Increase of Registered Capital and Investment Funds
Commercial banks and branches of foreign commercial banks established before the Law on Commercial Banks (Amended) No. 39/NA, dated 17 July 2023, shall increase their registered capital to not less than one trillion kip (1,000,000,000,000) and increase the investment funds of branches of foreign commercial banks to not less than six hundred billion kip (600,000,000,000) as stipulated in Article 13 of said law within ten years from 2 June 2025 onwards. Within the first five years, commercial banks and branches of foreign commercial banks must increase at least thirty percent (30%) of the required capital increase amount.
For commercial banks and branches of foreign commercial banks with capital adequacy below the level set by the regulations of the Bank of the Lao PDR, such banks shall increase their registered capital and investment funds to rectify capital adequacy within three years, and concurrently shall prepare a plan to increase their minimum registered capital and investment funds as specified in paragraph 1 of this article.
Article ມາດຕາ 2
Article 2 Plan for Increasing Registered Capital and Investment
Commercial banks and branches of foreign commercial banks must formulate a plan for increasing their registered capital and investment in accordance with Article 2 of this agreement, which has been approved by the shareholders' meeting or the relevant authorized person of the head office, and then submit it to the Commercial Bank Supervision Department of the Bank of the Lao PDR for final approval within ninety days from the date this agreement comes into effect. After the Commercial Bank Supervision Department approves such plan, commercial banks and branches of foreign commercial banks must strictly implement that plan.
Article ມາດຕາ 3
Article 4 Forms of Increasing Registered Capital and Investment Funds
Commercial banks and branches of foreign commercial banks may increase their registered capital and investment funds in the following forms:
1. Shareholders or the head office contribute their own funds to increase capital;
2. Use annual net profit or accumulated profit to increase capital, in accordance with relevant laws and regulations;
3. Convert their assets into registered capital or investment funds;
4. Restructure the shareholder structure by increasing the number of shares and then allowing new investors to purchase shares in the form of a limited company or public company;
5. Other forms as approved by the Bank of the Lao PDR.
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