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The banking sector in Laos has been gradually developed over the years, and now in Laos, banks are flourishing, and provide a number of banking and financial services to the people of Laos. There are a number of banks in Laos, and with the gradual expansion and liberalization of the country's economy, the banking sector is gradually gaining ground and becoming an important sector in Laos.
The Decree 11 on the subject of the reform of the banking system was passed in the month of March, 1988, declaring commercial bank functions to be henceforth independent from central bank functions. This made the State Bank at Vientiane the central monetary agency.
In 1990, a banking law was enacted, giving rise to the Bank of Laos, or the Central Bank, which henceforth assumed control of other banks. The Bank of Laos being the central bank, has powers to supervises and regulate other banks and financial institutions.
The Central Bank has about ninety regional branches, and the other branches of the old State Bank have been converted to commercial banks, which have the task of promoting private investment and granting capital.
Laos has several commercial banks as of now, which includes the Joint Development Bank, which is a joint venture of Laos and Thailand. These banks are gradually being privatized, owing to government policies. Interest rates are uniform all over Laos, and loans are available without hassle, including special loans for the agriculture and the forestry sectors.
Several international banks have a presence in Laos, notable among them being the Standard Chartered Bank.
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