Lao People’s Democratic Republic: Technical Assistance Report-Risk-Based Banking Supervision
IMF Staff Country Reports, October 30, 2019
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- Lao People’s Democratic Republic: Technical Assistance Report-Risk-Based Banking Supervision
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Bibliographic details
- Published: October 30, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513518466.002
Purpose and scope
- Technical Assistance report providing advice toward implementing risk-based supervision (RBS) in the Lao People’s Democratic Republic.
- Emphasis on practical application of RBS tools and learning-by-doing to improve the quality of supervision.
Key findings
- Formal approval of the RBS manual needs to be expedited.
- Full implementation of RBS methods in practice is essential and should not be unduly delayed by other supervisory priorities.
- The root causes of risks are not being sufficiently identified.
- Greater attention is required to well-reasoned analysis of risks and the accompanied supervisory action.
- The mission advised additional modification of these documents to enhance their usefulness and quality.
Recommendations and supervisory priorities
- Expedite formal approval of the RBS manual.
- Fully implement RBS methods in practice to realize quality improvements from practical application and learning-by-doing.
- Improve identification of the root causes of risks.
- Emphasize well-reasoned risk analysis and ensure supervisory actions are clearly linked to that analysis.
- Modify RBS-related documents further to enhance usefulness and quality.
Foreign-branch supervision
- Give special consideration to:
- the extent of adequate oversight by the branch head office,
- supervision by the home supervisor,
- the overall financial condition of the foreign banking group.
- The mission provided examples of qualitative criteria for foreign-branch rating.
International Monetary Fund. Monetary and Capital Markets Department "Lao People’s Democratic Republic: Technical Assistance Report-Risk-Based Banking Supervision", IMF Staff Country Reports 2019, 331 (2019), accessed 9/9/2026, https://doi.org/10.5089/9781513518466.002
Content in this bundle
- 1laoea2019003