About Lao Development Bank
Lao Development Bank (LDB) is a State Owned Commercial Bank with 100% capital owned by Ministry of Finance (MOF) operating under the suppervision of the Bank of Lao PDR. LDB has been actively contributed to the implementation of the State/Party’s policies and guidelines basing on its rights and roles in order to stimulate the national social-economic development.
In 1999, the Government or the Bank of Lao PDR had implemented the policies on improvements of the Banking Sector especially the State Owned Commercial Banks including Lao Development Bank. This was because different Banks had been operating under the weight of a bank-wide set of operational weaknesses which include the absence of capable and commercially experienced management; weak staff capacity; inadequate capacity to compete; weak enforcement of credit discipline, inadequate governance structures; deficient bank-wide policies, systems and procedures; poor asset quality; high operating costs and staff inefficiency. There fore, the Government had decided to merge all state owned commercial banks in to two banks namely: Lanexang Bank Ltd and Lao May Bank Ltd.
Lao Development Bank (LDB) was established on 9 April 2003 by merging two previous state-owned commercial banks namely Lane Xang Bank Ltd and Lao May Bank Ltd. It has also inherited with it all assets, liabilities and employees. The key objectives of the merger were to improve and strengthen the overall operations of the Bank including development and implementation of new operational policies and procedures, building capable and commercially experienced management and staff who are motivated and properly trained, strengthening governance and organization structures, implementation of a set of plans to attain financial targets, demonstrating measurable and significant improvements in the financial soundness of the Bank, obtaining customers’ satisfaction and meeting the Operational Targets of the Bank, and contributing in achieving of the overall social-economic development targets of the Government.
After the merger in 2003, LDB had Head Office building located at 39 Pangkham Street, Ban Xiengnheun, Chanthabouly District, Vientiane Capital. In April 2008, the LDB Head Office was moved to building no. 013 Souphanouvong Road, Ban Sihom, Chanthabouly District, Vientiane Capital Lao PDR until today.
Over the past ten years, LDB has been constantly growing in terms of total assets, human resource and technology development. From 2003, the Bank had used the former accounting system called “ Bank 2000” before changing to use new Core Banking System “T24” in 2010. Since the 1st March 2010, all LDB Branch network has been connected and on line over the country. At the same time, the Bank has also introduced some new electronic products/services such as: ATM, EFPOS and Mobile Banking. It is also interesting to note that LDB is the first Commercial Bank which developed and introduced the Mobile Banking in the form of full M-Commerce.