Lao Bullion Bank expands links with commercial banks for gold-backed loans

The Lao Bullion Bank Co., Ltd. has entered into an agreement with four leading commercial banks in Laos to provide loans that can be secured by Gold  Certificates of Lao Bullion Bank.
The partner banks are the Joint Development Bank (JDB), Lao Development Bank (LDB), ST Bank, and the Agricultural Promotion Bank (APB).
The move is aimed at improving access to finance for individuals and businesses while enhancing financial liquidity.
A Memorandum of Agreement (MOA) on the partnership was signed in Vientiane on July 3.

The MOA was signed by the Chief of Executive of Lao Bullion Bank Co., Ltd., Dr Chanthone Sitthixay, and representatives of the respective commercial banks, namely the Chief of Executive of  the Lao Development Bank (LDB) Co., Ltd., Mr Fongsamouth Duangchay;  CEO of the Joint Development Bank (JDB), Mr Sakhone Yorphanxay; Deputy CEO of the Agricultural Promotion Bank, Mr Sisaart Neum-asa; and Acting CEO of the ST Bank, Mr Ekkalath Lattanachan.
Also present on the occasion were key government and finance officials, including the Deputy Governor of the Bank of the Lao PDR (BOL), Mrs Khanhkeo Lamaningao; Deputy Minister of Finance, Mr Soulivath Souvannachoumkham; Deputy Minister of Industry and Commerce, Dr Manothong Vongsay and the President of the Lao Bankers’ Association, Mr Phoutthaxay Sivilay.
The Gold Certificates, issued by Lao Bullion Bank Co., Ltd., are legally recognised documents that serve as collateral for loans. Registered as chattel mortgages, these certificates can be used by customers to apply for credit at participating commercial banks and financial institutions in Laos.
According to the Lao Bullion Bank, customers who deposit gold at the bank receive an annual interest payment of 2 percent in gold. They are also issued a gold certificate representing their deposit, which can be used to secure loans from partner banks.
The scheme represents a significant advancement in gold-backed lending in Laos, offering a secure and convenient option for credit access.

By Times Reporters
 (Latest Update July 7, 2025)