Agreement on the Establishment of Commercial Banks and Branches of Commercial Banks
关于设立商业银行及商业银行分行的协议
ຂໍ້ຕົກລົງ ວ່າດ້ວຍ ການສ້າງຕັ້ງທະນາຄານທຸລະກິດ ແລະ ສາຂາທະນາຄານທຸລະກິດ
Summary
This agreement, formulated by the Bank of the Lao PDR, establishes principles and regulations for establishing commercial banks and branches of foreign commercial banks, including shareholding, application documents, approval, issuance of temporary and permanent establishment licenses, establishment of branches and service outlets, and changes in shareholders and management.
Articles
Article 1
Purpose. This Agreement stipulates the principles and regulations for the establishment of commercial banks and branches of commercial banks in the Lao People's Democratic Republic, serving as the basis for submitting and considering establishment applications, aiming to ensure that approved commercial banks and branches of commercial banks possess strength and stability, are able to actively contribute to national socio-economic development, and align with regional and international standards.
Article 2
Principles for the Establishment of Commercial Banks and Their Branches. Whether domestically or abroad, the establishment of commercial banks and their branches must obtain a license from the Bank of the Lao People's Democratic Republic. The Bank of the Lao People's Democratic Republic shall not accept applications for the establishment of banks without a legal entity, nor applications submitted by applicants without a legal entity.
Article 3
Shareholding in the establishment of commercial banks. Natural persons and legal persons may serve as shareholders in the establishment of commercial banks, provided that one or more banks must hold more than 50% (fifty percent) of the total voting shares in the establishment shares. With respect to natural persons, each individual shall not hold more than 10% (ten percent) of the total voting shares in the establishment shares of a commercial bank. Domestic and foreign commercial banks may establish group banks in the Lao People's Democratic Republic, may hold up to 100% (one hundred percent) of the shares in such group banks, and may establish their branches in accordance with the provisions of this agreement. Shareholders, whether natural or legal persons, shall not hold a significant interest in more than two banks established in the Lao People's Democratic Republic, except in cases where participation is approved by the Bank of the Lao People's Democratic Republic for the purpose of strengthening a poorly managed bank. Natural person shareholders with family or kinship relationships (whether lineal or collateral) shall be considered as the same person and must comply with the shareholding restrictions for natural persons as stipulated in the first paragraph of this article.
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