BOL clarifies: Most APB cases linked to past technical shortcomings, not corruption

The Bank of the Lao PDR (BOL) provided clarification through its official news page last month, regarding information published on the Facebook page of the Inspection Journal, and reports by various news outlets, including www.vientianetimes.org.la and laotiantimes.com in June last year.

The BOL stated that the monitoring and inspection of the BOL and state-owned commercial banks is a regular annual function carried out in accordance with the Law on the BOL in December, 2024; the Law on Commercial Banks in July, 2023; and the Law on State Inspection in December, 2022.
The disclosure of inspection results is conducted through annual inspection meetings and official press releases published in various media outlets.
Some of the reported content stated that: “In the banking sector, a total of 21 corruption cases were identified, including six new cases (one at the BOL, three at the Nayoby Bank and one at the Banque Pour Le Commerce Exterieur Lao Public (BCEL), and 15 additional cases related to previous cases (five at the Agricultural Promotion Bank (APB) and 10 at the Nayoby Bank).”
It was also reported that: “A total of 167 Party members and officials were disciplined (11 at the BOL, 37 at the BCEL, 114 at the APB and five at the Nayoby Bank), including 59 at Level I, 80 at Level II, 20 at Level III, and eight at Level IV.” The BOL clarified that such information was presented in summary form.
Therefore, the BOL, as the macro-prudential regulator of financial institutions, has provided the following clarifications for public understanding:
1.         Of the five cases related to the APB, only one case has entered the legal process and involves a legal violation. The remaining four cases involve procedural shortcomings and non-compliance with credit regulations; they do not constitute corruption.
2.         As the APB prepares for restructuring to a joint-venture bank, the government has intensified inspections to comprehensively resolve legacy issues prior to the change in shareholder structure. In this context, 114 employees were subject to disciplinary measures, including 49 at Level I and 65 at Level II. All violations occurred prior to the joint venture period (2013-2019), while the disciplinary process was completed in 2024. This means all the cases reported above are traced back to disciplinary issues that happened while the bank was under the status of state-owned bank and before the restructuring to a joint-venture bank.
Following the resolution of these issues, APB has continued its restructuring process. In terms of financial performance, APB recorded a net profit after tax of 27.73 billion kip in 2021 (prior to the joint venture).
After the joint venture and shareholder restructuring in 2022, APB recorded a net profit of 11.60 billion kip in 2022, 61.76 billion kip in 2023, 157.48 billion kip in 2024, and 269.26 billion kip in 2025 (based on the December 2025 monthly operating results report).
Detailed information is available in the externally audited financial statements published on APB’s official website.
The BOL confirms that the APB currently maintains a stable financial position, operates in compliance with applicable laws and regulations, and has demonstrated continuous improvement in performance.
Regular audits conducted by the State Audit Office and independent external auditors have not identified any corruption-related issues.

By Advertorial Desk
 (Latest Update June 8, 2026)