Decrees to protect depositors are underway
Decrees to protect depositors are underway
The Bank of the Lao PDR (BOL) is discussing the drafting of decrees as essential tools to protect bank depositors as well as building confidence in Laos' financial institu tions among members of society.
A meeting held in Vientiane on Tuesday was chaired by BOL Deputy Governor Ms Vatthana Dalaloy, and Director of Depositors Protection Fund (DPF), Ms Sengdaovy Vongkhamsao and attended by various bank officials.
At the meeting, Ms Sengdaovy highlighted the importance and necessity of the drafting of decrees to protect depositors, which have been arranged over 15 years within the bank regulations, but are not yet associated with national and international legal systems.
“Therefore, the drafts of decrees will help to protect depositors and all depositors will be protect ed by the Law on Commercial Banks,” she said.
The drafts of decrees comprise nine units and 44 articles referring to government policy on the protection of deposits and principles of depositors' protection and other necessary forms of decrees.
The meeting also aimed to collect recommendat ions from experts for finance, currencies and laws before the drafts of decrees will be finalised and summarised as completed versions of decrees by the board of directors of the DPF.
The DPF expects that the completed version of the decrees will play a significant role in the current period of regional integration, especially the Asean Economic Community.
Prior to this meeting, the DPF organised similar advisory meetings in various provinces of Savannakhet, Champassak, Oudomxay and Luang Prabang in a bid to collect recommendations and suggestions from specialists in different fields that are associated with depositors' protection.
Under the directions of the government, many changes were clearly made over the past years in terms of the revision of the regulations, decrees and laws to protect the benefits of deposits at the banks.
The BOL, on behalf of the government, also cooperates with foreign partners to build the expertise of the banking staff and pro vide them with new experiences and lessons learnt from international experts.
Incentives in the construction of the drafts of decrees will also be important measures to ensure they protect the rights and benefits of depositors, making financial institutions in Laos more reliable.
