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Two more banks join Depositors Protection Fund
Sacombank of Vientiane and Public Bank of Savannakhet province have joined the Depositors Protection Fund (DPF), contributing to increased confidence in the finance sector.
The inauguration ceremony took place in Vientiane yesterday, attended by Bank of the Lao PDR (BOL) Vice Governor Mr Sonexay Sithphaxay and other guests.
The addition of the two banks means the 11-year-old fund now has 26 banks as members, including three state commercial banks, three joint ventures, eight private, and 10 foreign franchise banks.
The DPF was created in 2000 with the aim of boosting the domestic economy by encouraging people to deposit money in banks instead of hoarding it at home.
The fund has significantly contributed to stabilising the national monetary system and to tackling inflation.
“Under the guidance of the BOL, the fund has contributed to stability in the financial system and has acted in the interests of DPF members, especially those depositing into the banking system amid high competition in the sector,” DPF Acting Director Mr Santy Phonmeuanglao said.
The DPF hopes that 34 financial institutions registered by BOL will join the fund next year, when its total assets would reach 75 billion kip - an increase of 25 billion kip from this year.
Mr Santy said strong competition requires the DPF to work effectively, be integrated internationally, be technically competent, and analyse possible risks for members in order to become a true financial banking tool of the financial and monetary system and strengthen the capacity of the national economy.
vientiane times
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