New company to join assurance business

The Lao Development Bank, a state bank, a good friend of small-medium enterprises (SMEs) through releasing low-interest loans had investment with the Assurance and Post Company of Vietnam to establish the Lane Xang Assurance Public Company expecting to operate this month.

The total investment is worth of 100 billion kip in which the Lao Development Bank holds 48 per cent and the rest is the Vietnamese side. The new Lane Xang Assurance Public Company will operate on 11 October with the aim of providing a full set of assurance service in Laos.

The Lao Development Bank starting in 2003 by joining two state-owned commercial banks of “Lao May” and “Lane Xang”, has grown constantly. Presently, the bank has 18 branches, 45 service units countrywide, said the General Managing Director of the Lao Development Bank, Mrs Bounta Daravy last Friday.

The bank is currently using current banking system including core banking and T24, which proved the bank’s attempt so far. Some ATMs have already been installed in Vientiane Capital, Khammouane and Vientiane provinces and 63 ATMs are expected to be installed in the next few months countrywide.

More than 2,400 people are using our ATM service which is expected to increase because large people still have trust on the state-owned bank, said the manager.

The bank currently provides different banking services to the general public including current account, saving account, term deposits account, loan service, foreign exchange and help developing SMEs in Laos.

Over the past seven years, the bank has focused on improving and developing the banking system, which has grown by 18 per cent.

In 2008, the bank attempted to improve mechanisms and improved credit loan policy to help the SMEs in Laos to get access to the financial institute.

Tags: assurance business