Thailand-based lenders TMBThanachart Bank PCL, CIMB Thai Bank PCL, Bank of Ayudhya PCL and Bangkok Bank PCL have decided to shut down branches in Laos amid more stringent regulations and declining business activity in the country, Bangkok Post reported.
TMBThanachart Bank and CIMB Thai Bank will close one branch each in the Laotian capital of Vientiane, while Bank of Ayudhya will shutter its Savannakhet branch and Bangkok Bank its Pakse branch in Champasak province, according to the Aug. 31 report.
Thai corporations that serve as the key clients of the banks have discontinued their operations in the country, a banking industry source told the publication.
The Bank of the Lao PDR has implemented new rules during the past three years requiring foreign commercial banks to raise their minimum registered capital to 300 billion kip per branch from 100 billion kip, in addition to tightening banking supervision particularly in the areas of lending and foreign exchange management, Bangkok Post noted.
As of Aug. 30, US$1 was equivalent to 19,513.50 Laotian kip.
