VIENTIANE (Vientiane Times/Asia News Network): The governors of the Bank of the Lao PDR (BOL) and the State Bank of Vietnam (SBV) recently signed a Memorandum of Understanding (MOU) on Cooperation and Exchange of Information in Banking Supervision.
The agreement was signed during an official visit to Vietnam by Lao Prime Minister Phankham from Jan 8-10 in response to an invitation from Vietnamese premier Phạm Minh Chinh.
The two prime ministers witnessed the signing of the MOU, which was inked by BOL Governor Sonexay Sitphaxay and SBV Governor Nguyen Thi Hong.
The MOU is an enhancement of the Cooperation Agreement on Exchange of Information in Banking Supervision signed in 2008 to reflect current banking investment, according to the Bank of the Lao PDR.
The new agreement specifies the cooperation between the two central banks, with an emphasis on the sharing of information, cross-border banking supervision, on-site examinations, and crisis management of commercial banks under the supervision of each authority’s responsibilities based on mutual trust and understanding.
These show the commitments of the two central banks in promoting the quality of cross-border establishment examinations, building the capacity of examiners and analysing bank risks, in line with banking strategies and cooperation in implementing the Asean Banking Integration Framework of the two central banks.
In the context of the traditional friendship between Laos and Vietnam, the signing of the MOU on Cooperation and Exchange of Information in Banking Supervision between the BOL and SBV reflects their mutual trust and support, as well as mutual commitment to effectively fulfil cooperation agreements made between the two countries.