The branch of the Bangkok Bank in Vientiane is still open for business following the closure of the branch in Pakxe city, Champassak province.

Four Thai bank branches close following change in business strategy

Branches of four Thai commercial banks operating in Laos have closed due to changes in the banks’ business strategy.  
The closure of these branches is not related to the current economic situation in Laos, as many people have claimed in posts on social media, the Deposit Protection Office of the Bank of the Lao PDR stated.
Rumours have circulated among members of the public that the bank branches, namely the Thai Military Bank in Vientiane, Krungsri Ayudhya Bank in Savannakhet province, CIMB Thai Bank in Vientiane province, and the Bangkok Bank in Champassak province, have closed their doors because of the weak value of the kip and a shortage of foreign currency reserves, fearing a collapse of the Lao economy.
The Director General of the Deposit Protection Office, Mr Aloun Bounnhong, denied these rumours, noting that many other foreign bank branches in Laos are financially stable and providing services as normal.
He said the main reason for the closure of the four bank branches was the fact that customer numbers had declined following the completion of their business operations or development projects in Laos.
Most of these customers were Thai business operators and investors, who have closed their accounts and withdrawn their money, and will probably deposit their savings in banks in Thailand, Mr Aloun said.
At the same time, the central bank is encouraging commercial banks in Laos to streamline their operations and make them more interconnected, he added.
If banks want to reduce their expenditure, they don’t need to provide every service independently but can partner within their banking network to operate more effectively, he said.
The Thai Military Bank in Vientiane and the CIMB Thai Bank in Vientiane province gave notice of their intention to terminate their services to the Bank of the Lao PDR in October 2019, followed by the Krungsri Ayudhya Bank in Savannakhet province in January 2020 and the Bangkok Bank Pakxe in Champassak province in March 2022, Mr Aloun said.
The Bank of the Lao PDR then asked these banks to submit the necessary documents before certification by the central bank. The central bank certified the termination plan of the Thai Military Bank in Vientiane in July 2020, the Krungsri Ayudhya Bank in Savannakhet province in March 2020, the CIMB Thai Bank in Vientiane province in August 2021, and the Bangkok Bank Pakxe in Champassak province in July 2022.
The banks issued notification of their planned closure in the media, advising customers to withdraw their money, and their intentions concerning the payment of debts and taxes through official audit channels. No problems were encountered in this process, according to the Deposit Protection Office.
The Thai Military Bank in Vientiane received final approval for termination of its services in August 2022, the Krungsri Ayudhya Bank in Savannakhet province in September 2022, the CIMB Thai Bank in Vientiane province in June 2023, and the Bangkok Bank Pakxe in Champassak province in August 2023.
Mr Aloun advised members of the public not to base their comments on hearsay, but to investigate the facts before posting irresponsible statements on social media.

By Times Reporters
(Latest Update August 29, 2023)