BOL: Lao banks must develop international standards of service
BOL: Lao banks must develop international standards of service
Laos' central bank, the Bank of the Lao PDR (BOL), is urging financial institutions and the banking sector to rapidly upgrade their services to international standards, to enable them to compete with overseas banks.
“This development is necessary because Laos is now a member of the World Trade Organisation (WTO) and the Asean Economic Community (AEC) is the goal for regional economic integration in 2015,” BOL Deputy Governor Mr Sonexay Sithphaxay said.
“Financial institutions and banks must adopt international standards step by step, including their services and policies,” Mr Sonexay said. He was speaking at the opening ceremony of ACLEDA Bank Lao Ltd's Xaysettha branch in Vientiane last week.
The AEC will create a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy.
Mr Sonexay said Laos is now committed through the WTO to use systems and regulations that comply with those stipulated by the global trading body, and banks will need to upgrade their services to new levels of quality.
“If not, our financial sector will not be able to compete with other banks in the region or globally,” he said.
Laos currently has 33 banks. The sector has grown rapidly in recent years and it is hoped this will continue in the future.
Many banks have developed quality services while others are still in need of improvement.
“Some banks in Laos are now signing banking service cooperation agreements with foreign banks to provide financial and banking services in both Laos and overseas,” Mr Sonexay said.
In the next five or ten years, Lao banks will strengthen cooperation in the services they offer, which will help them to become stronger and bolster growth.
“If we remain as individuals, we will struggle to compete with other banks in the global market. We will also have less money or revolving capital if we continue to provide services on an individual basis,” he stressed.
vientiane times
