BoL boosts management of rural collective unions
BoL boosts management of rural collective unions
Savings and credit unions are a gathering point for poor people to access funds and can play a key role in terms of poverty reduction in rural communities nationwide, a senior bank official said recently.
Deputy Director General of the Financial Institutions Supervision Department of the Bank of the Lao PDR (BOL), Ms Kaysone Manivong told Vientiane Times that the savings and credit unions have been established from the savings groups of local villagers in different provinces or on the outskirts of Vientiane.
More than 50 technical staff of various credit unions and savings units yesterday gathered to share technical skills and experience regarding the management of such institutions.
“The Bank of the Lao PDR is helping them with legal processes and also to raise money for organising workshops to ensure everything is done in accordance with the law,” she said.
Ms Kaysone stressed that BOL also provides directives, inspection and assessment to ensure the operations of savings units and credit unions are properly managed.
“We have sent some technical staff to collaborate with local authorities to monitor and help with the upgrading of management skills,” she said.
Currently, more than 100 credit unions and savings units are under the supervision of the Bank of the Lao PDR.
“Over the past years, the members of savings and credit unions have been increasing rapidly, especially among people in northern Laos, who were previously lacking opportunities to access funding,” Ms Kaysone said.
She explained that disadvantaged women from ethnic groups are the most targeted, allowing them first priority when it comes to accessing funds.
The government has assigned BoL to supervise and manage the microfinance sector, and credit unions represent one of the most important financial mechanisms for rural villagers.
Challenges, weak points and future plans for the management of the credit union and savings units were identified by staff from the Bank of the Lao PDR and representatives of the credit unions and savings units, who also shared their experience.
The day-long seminar was supported by the Making Access to Finance More Inclusive for Poor People, a cooperative project between the BOL and UNDP / UNCDF.
Director General of the Financial Institutions Supervision Department of the Bank of the Lao PDR, Dr Akhom Praseuth chaired the seminar.
vientiane times
