BOL Halts Registration of Branches and Service Units of Non-bank Financial Institutions

On 18 August 2025, the Non-Bank Financial Institution Supervision Department of the Bank of the Lao PDR (“BOL”) issued Notice No. 1509, announcing a suspension of registration and a temporary halt on accepting applications for the establishment of branches and service units of non-bank financial institutions. This suspension is imposed as the BOL is considering the issuance of a new decision governing the establishment and operation of non-bank financial institutions, which will serve as the regulatory framework to ensure a more orderly registration process. The suspension will take effect in September 2025 and will remain in place until the issuance of the aforementioned decision.

According to the Law on Bank of the Lao PDR No.66 dated 11 December 2024, non-bank financial institutions include the following:

• Deposit taking microfinance institutions;
• Non-Deposit taking microfinance institutions;
• Credit guarantee companies;
• Leasing companies;
• Debt and asset management companies;
• Pawnshops;
• Credit and savings cooperatives;
• Payment service providers; and
• Other non-bank financial institutions as determined by the BOL.

We will keep you posted of any developments, including the issuance of the BOL’s decision on the establishment and operation of non-bank financial institutions. If you have any questions about this alert or need further information regarding the above, please contact the undersigned or your usual VDB Loi adviser.