Mrs Maniphone Intavanh (left), and Mr Fongsamout Duangchai, address a joint news conference in Vientiane on Wednesday to clarify misinformation circulated on social media.

BOL, LDB address public concern over rumours

 The Bank of the Lao PDR and the Lao Development Bank (LDB) have assured the public that the operations of the LDB remain stable, transparent and compliant with Lao laws.
 The two institutions held a joint news conference at the head office of the Lao Development Bank in Vientiane on Wednesday to offer a clarification about information circulated on social media.
 The event was livestreamed to provide clear information to customers, businesses, organisations and the public in Laos and abroad.
 The central bank said the Lao Development Bank remains financially stable, operates transparently and complies with the laws and banking regulations of Laos.
 The Deputy Director of the Department of Bank Supervision at the Bank of the Lao PDR, Mrs Maniphone Intavanh, said her organisation Bank had taken note of the information and images circulated on social media concerning the Lao Development Bank.
 The central bank monitored the issue, coordinated with relevant sectors and formed a committee to address the matter. It has also worked closely with the bank on a plan to respond to the issue.
 “Based on its monitoring and cooperation with LDB to date, LDB overall is strong and stable, and its business operations comply with the laws of the Lao PDR,” she said.
 The Lao Development Bank has continued to develop its operations and service network following its restructuring in 2021. The bank currently has registered capital of 1,200 billion kip and plans to further strengthen its capital base in the coming years.
 Its return on assets stands at 1.56 percent, while its return on equity is 28 percent. The Lao Development Bank’s non-performing loan ratio is 0.01 percent, reflecting effective credit management.
 Mrs Maniphone Intavanh, The Deputy Head of the Commercial Bank Supervision Department, said the bank has a modern liquidity management system that enables it to meet payment obligations and other commitments to customers and business partners.
 The Lao Development Bank undergoes annual audits by internationally recognised external auditing firms. The Bank of the Lao PDR also regularly monitors and supervises its operations. 
 Referring to measures against money laundering and financing of terrorism, Mrs Maniphone said the Lao Development Bank had followed relevant laws and regulations.
 It has invested in a modern Know Your Customer system and regularly submits required reports to the Anti-Money Laundering Intelligence Office.
“The Bank of the Lao PDR therefore wishes to assure parents, citizens, individuals, legal entities and organisations, both domestic and foreign, that the LDB is stable and conducts its business transparently,” she said.
 The Managing Director of Lao Development Bank Limited, Mr Fongsamout Duangchai, said the bank was established in 2003 and has operated for 23 years. The government holds a 30 percent share in it, while the private sector holds 70 percent.
 Mr Fongsamout  said the bank had a governance structure that complies with Lao laws and international standards. This structure includes a Board of Directors, a management board, an executive team and specialised departments.
 The bank also has its own Anti-Money Laundering and Risk Management Department, responsible for preventing financial crime and managing related risks. Mr Fongsamout  Doungchai said the bank uses a modern anti-money laundering system developed by a German software company. The system can screen customers and transactions against blacklists and sanctions lists issued by the United Nations (UN), the Office of Foreign Assets Control (OFAC) and the European Union (EU).
 The bank carries out customer due diligence before opening accounts and monitors transactions for unusual or suspicious activity. It also regularly reports suspicious transactions to the Anti-Money Laundering Intelligence Office and undergoes independent audits each year.
 “With regard to the information circulating on social media, alleging that LDB is involved in money laundering, I would like to affirm that this has no basis in truth,” Mr Fongsamout  said.
 He said the bank does not allow its systems to be used for money laundering or the financing of terrorism in any form. “LDB has carried out its anti-money laundering work seriously, systematically and continuously,” he said.
 Mr Fongsamout  said the bank will continue to protect customers’ interests, support banking system stability and build public confidence. He called on customers, business operators, traders and organisations in Laos and abroad to continue placing their trust in the bank.
 The Bank of the Lao PDR and the Lao Development Bank also encouraged the public to carefully check information and rely on official sources before sharing claims about banks or financial services.
 The joint news conference also provided an update on the wider condition of the Lao commercial banking system. Mrs Maniphone said the country’s banking system remains strong and stable.
 “Overall, the banking system has grown strongly, remained stable and maintained financial stability,” she said.
 The payment and settlement system has continued to modernise, allowing wider connectivity between banks in Laos and financial institutions in the region and internationally.
 The banking system also continues to play an important role in mobilising and providing funds for the country’s economic and social development.
 The Lao banking system recorded average asset growth of 23 percent a year from 2020. As of June 2026, total assets stood at more than 572 trillion kip.
 The banking system as a whole also continued to operate profitably and with reasonable efficiency. The system-wide average return on assets stood at 1.64 percent, while the average return on equity was 18 percent.
 The average capital adequacy ratio across the banking system was 17 percent, reflecting the sector’s ability to manage risks and maintain stability.
 The Bank of the Lao PDR said it will continue working with relevant sectors and the Lao Development Bank to ensure the bank’s operations proceed smoothly.

By Times Reporters
 (Latest Update July 30, 2026)