## Lao People’s Democratic Republic: Technical Assistance Report-Risk-Based Banking Supervision

_IMF Staff Country Reports, October 30, 2019_

## Source details

**Canonical URL:** [Lao People’s Democratic Republic: Technical Assistance Report-Risk-Based Banking Supervision](https://www.imf.org/en/publications/cr/issues/2019/10/30/lao-peoples-democratic-republic-technical-assistance-report-risk-based-banking-supervision-48774)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/10/30/lao-peoples-democratic-republic-technical-assistance-report-risk-based-banking-supervision-48774/index.md)
- [Structured JSON version](/en/publications/cr/issues/2019/10/30/lao-peoples-democratic-republic-technical-assistance-report-risk-based-banking-supervision-48774/index.json)
- [Bundle manifest](/en/publications/cr/issues/2019/10/30/lao-peoples-democratic-republic-technical-assistance-report-risk-based-banking-supervision-48774/bundle-manifest.json)

## 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**
  - [1laoea2019003 (Markdown version)](/-/media/files/publications/cr/2019/1laoea2019003.pdf.md){rel="alternate" type="text/markdown"}
  - [1laoea2019003 (PDF)](/-/media/files/publications/cr/2019/1laoea2019003.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2019/10/30/lao-peoples-democratic-republic-technical-assistance-report-risk-based-banking-supervision-48774_