Decision on the Capital Adequacy Ratio of Commercial Banks
关于商业银行资本充足率的决定
ຂໍ້ຕົກລົງ ກ່ຽວກັບຄວາມພຽງພໍຂອງທຶນ ສຳລັບທະນາຄານທຸລະກິດ
Summary
This decision, issued by the Governor of the Bank of the Lao PDR, requires commercial banks to maintain a capital adequacy ratio of total capital not less than 8% of risk-weighted assets, with Tier 1 capital not less than 5%, and specifies capital composition, calculation methods, reporting, and penalty provisions.
Articles
Article 1
Purpose. This Decision prescribes the maintenance of capital adequacy ratios for commercial banks under the supervision of the Bank of the Lao People’s Democratic Republic, ensuring that they have sufficient capital to conduct business, thereby safeguarding the soundness of commercial banks.
Article 2
Capital of Commercial Banks. The capital of commercial banks consists of Tier 1 capital and Tier 2 capital, wherein: Tier 1 capital is the primary capital, which is irrevocable during the continuous operation of the commercial bank, except in cases where the bank ceases its business operations; Tier 2 capital is variable and revocable supplementary capital. The detailed contents of Tier 1 capital and Tier 2 capital are stipulated in the guidelines for the implementation of this Decision.
Article 3
Capital Adequacy Ratio. Commercial banks shall maintain their total capital adequacy ratio at no less than 8% of risk-weighted assets, of which Tier 1 capital shall be no less than 5% of risk-weighted assets.
Showing the first 3 of 8 articles. Open the LaoPaniti app for the full trilingual text.
Read the full trilingual text with AI explanation in the LaoPaniti app← LaoPaniti home: AI legal Q&A · contract drafting · Chinese-Lao translation