A landlocked country of just six million people, Laos is commonly regarded as a tranquil place. Wedged between Thailand, Myanmar, China, Vietnam and Cambodia, the country has been run by the Lao People’s Revolutionary Party for more than 30 years. Laos’ policy-makers, like their neighbours and ideological mentors in Hanoi and Beijing, have sought gradually to liberalise the business and economic sphere over the past two decades, while keeping a tight grip on the political helm.
At present, Laos’ commercial banking sector comprises just three state-owned banks, two foreign joint venture banks, one private domestic bank, six foreign bank branches, and a representative office of Standard Chartered Bank. Altogether, these banks employ no more than 2400 people, of whom more than 80% work for the state-owned banks, which account for about 57% of aggregate commercial bank assets (of about $690m). The foreign bank branches represent less than 20% of total bank assets.
