The Lao central bank plans to resume accepting applications to establish new non-bank financial institutions by the end of 2026, after suspending new applications earlier this year to review and update licensing regulations.
Visone Saysongkham, head of the non-bank financial institution supervision department at the Bank of the Lao PDR (BOL), said the review is intended to improve the application process for prospective operators while supporting the government’s broader push to expand access to financial services across the country.
The suspension, which has been in place for roughly two months, has given the department time to examine existing requirements and related legislation, according to the department.
Laos currently has 300 non-bank financial institutions in operation.
Of these, 166 fall under the direct supervision of the central bank, while the remaining 134 operate as branches in southern provinces.
The BOL said these institutions have played a role in the country’s economic and social development by broadening access to financial services, but added that it is also reviewing their management and risk-control practices to ensure compliance with existing laws.
Licensing Freeze
The move builds on a suspension first announced on 31 July, when the central bank halted new applications specifically in Vientiane Capital for deposit-taking and non-deposit-taking microfinance institutions, as well as pawnshops, covering both domestic and foreign investors.
At the time, the bank said the pause was meant to give authorities time to review the operational status of institutions already licensed in the capital and to tighten licensing conditions going forward.
It initially indicated it expected to reopen applications by November, though the detailed rules underpinning any reopening have not yet been made public.
The central bank has said the suspension does not affect existing borrowers or customers, as currently licensed operators can continue providing services as normal.
Investors outside Vientiane Capital have also been able to continue applying to establish new financial institutions through BOL’s provincial branches throughout the suspension period.
With the latest announcement extending the review nationwide and setting a year-end target for reopening applications, the central bank has not said what the new rules will look like, just as it did when the suspension first applied only to Vientiane Capital.
