Front Matter Page
IMF Country Report No. 20/206
LAO PEOPLE’S DEMOCRATIC REPUBLIC
TECHNICAL ASSISTANCE REPORT—RISK-BASED BANKING SUPERVISION
June 2020
This Technical Assistance report on Lao People’s Democratic Republic was prepared by a staff team of the International Monetary Fund. It is based on the information available at the time it was completed on January 2020.
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This document was prepared before COVID-19 became a global pandemic and resulted in unprecedented economic strains. It, therefore, does not reflect the implications of these developments and related policy priorities. We direct you to the
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Front Matter Page
INTERNATIONAL MONETARY FUND
Monetary and Capital Markets Department
LAO PEOPLE’S DEMOCRATIC REPUBLIC
Risk-Based Banking Supervision
Hee Kyong Chon (MCM), Joel Hefty, and Richard Nun (External Experts)
January 2020
The contents of this report constitute technical advice provided by the staff of the International Monetary Fund (IMF) to the authorities of Lao P.D.R. (the “TA recipient”) in response to their request for technical assistance. This report (in whole or in part) or summaries thereof may be disclosed by the IMF to IMF Executive Directors and members of their staff, as well as to other agencies or instrumentalities of the TA recipient, and upon their request, to World Bank staff and other technical assistance providers and donors with legitimate interest, unless the TA recipient specifically objects to such disclosure (see Operational Guidelines for the Dissemination of Technical Assistance Information— http://www.imf.org/external/np/pp/eng/2013/061013.pdf). Disclosure of this report (in whole or in part) or summaries thereof to parties outside the IMF other than agencies or instrumentalities of the TA recipient, World Bank staff, other technical assistance providers and donors with legitimate interest shall require the explicit consent of the TA recipient and the IMF’s Monetary and Capital Markets Department.
Contents
Glossary
Preface
Executive Summary
I. Background
A. Introduction
B. Progress Since the Previous TA Mission
II. Implementation of RBS
A. Banking Law and Prudential Regulations
B. RBS Manual
C. Training all BSD Staff and Banker Information Seminar
D. Criteria for Supervision of Foreign Branches
E. Supervisory Response
III. Offsite Supervision
A. IP and RAS
B. Data Quality and Performance Ranges
C. Systemic Report
D. Training, Coaching, and Collaboration
IV. Onsite Supervision
A. Planning and Conducting Onsite Examinations
B. ROX
V. Future TA Needs
Tables
1. Main Recommendations
2. Status of Recommendations Last TA Mission (March 2019)
Appendices
I. Supervisory Categories and Types of Responses
II. Intervals between Onsite Examinations
Glossary
| BoL |
Bank of the Lao P.D.R. |
| BSD |
Bank Supervision Department |
| CAMELS |
Capital, Asset Quality, Management, Earnings, Liquidity, and Sensitivity to Market Risk |
| FBB |
Foreign Bank Branch |
| FIRST |
Financial Reform and Strengthening Initiative |
| FSI |
Financial Soundness Indicator |
| FX |
Foreign exchange |
| FX NOP |
Foreign Exchange Net Open Position |
| IP |
Institution Profile |
| LAK |
Lao kip |
| MCM |
IMF Monetary and Capital Markets Department |
| MOU |
Memoranda of Understanding |
| NOP |
Net Open Position |
| NPL |
Nonperforming Loan |
| RAS |
Risk Assessment Summary |
| RBS |
Risk-Based Supervision |
| ROX |
Report of Onsite Examination |
| TA |
Technical Assistance |
