The Bank of the Lao PDR (BOL), through its Non-Bank Financial Institution Supervision Department, issued Notice No. 1509 dated 18 August 2025, announcing the suspension of applications for the establishment of additional branches and service units by non-bank financial institutions. This measure, which will take effect in September 2025, will remain in force until the BOL issues a new decision governing the establishment and operation of such institutions.

The suspension reflects the BOL’s policy direction toward strengthening supervision and introducing a more comprehensive regulatory framework. Once the new decision is adopted, it is expected to provide clearer standards and procedures for registration and compliance obligations.

Under the Law on the Bank of the Lao PDR No. 66/NA dated 11 December 2024, non-bank financial institutions include microfinance institutions, leasing companies, credit and savings cooperatives, credit guarantee companies, pawnshops, payment service providers, debt and asset management companies, as well as other non-bank financial institutions under the supervision of the BOL.

For businesses and investors active in this sector, the immediate impact is that expansion plans will be delayed until the new decision comes into effect. Businesses should note that the updated framework may introduce more structured requirements and compliance obligations.

Insight Legal Advisors (Laos) will keep you informed of any updates from the BOL. Should you require assistance, please contact us.

This alert is for informational purposes only and does not constitute legal advice.