Technical Cooperation for Lao Development Bank (LDB)

JFC-Micro has provided technical cooperation for Lao Development Bank (LDB) to develop its human resources and to improve its credit operations, as an ODA project of Policy Research Institute (PRI) of Ministry of Finance (MOF), Japan.

Outline of Lao Development Bank

LDB was established on April 2003 by merging two previous state-owned commercial banks namely Lao Xang Bank and Lao May Bank. Since then, LDB plays an important role as a financial institution for SME promotion.

Organization State-owned Commercial Bank
Objective/Purpose Loan Services, Deposits, Foreign Exchange, etc.
Established April 2003
Branch Offices 18 Branches, 39 Service Units, 17 Foreign Exchange Units (as of December 2009)
Employees 1,106 (as of February 2011)
Outstanding Loans 2,114 billion Kip (as of December 2010)
*Above data is based on the hearing from LDB

Back ground of JFC-Micro's Technical Cooperation

LDB provides widespread of financial services. Under the governmental policy, the bank now puts more importance on financing for SMEs. Thus, it is required for LDB to develop human resources and improve its credit operations.

Under these circumstance, the bank asked PRI for technical support. Considering the achievement by JFC-Micro in the Technical Cooperation for Vietnam Bank for Social Policies and for SME Bank, Malaysia, PRI asked JFC-Micro for technical cooperation.

JFC-Micro's Activities on this peoject

Goal: Develop LDB's human resources and to improve its credit operations
Date Purpose Contents in detail
March 9-18, 2011 Preliminary Survey JFC-Micro and PRI conducted a field survey in order to figure out the necessity of technical cooperation. Executives of LDB officially asked for the provision of JFC-Micro’s know-how.
Preliminary Survey
Preliminary Survey
June 15-16, 2011 Signing Ceremony JFC-Micro and PRI visited Vientiane to sign the Memorandum of Understanding. After the signing ceremony, JFC-Micro, PRI and LDB held a discussion. All parties agreed to hold the 1st seminar on November, 2011.
Signing Ceremony
Signing Ceremony
November 29 – December 10, 2011 1st Seminar in Laos JFC-Micro gave lectures to 93 managerial staff such as branch manager, unit head, etc. regarding credit analysis methods in JFC-Micro. Lectures were held at three cities (Luang Prabang, Pakse and Vientiane), two-day each.
At the discussions held at the last day of the seminar, all parties agreed to hold next seminar in Japan.
1st Seminar in Laos
1st Seminar in Laos
June 4-15, 2012 2nd seminar in Japan JFC-Micro accepted 20 members of LDB including executives in head office and branch managers, and conducted a two-week seminar in Japan.
They were highly motivated to improve their operation, so they asked a lot of questions during the seminar.
2nd seminar in Japan
2nd seminar in Japan
Mid-term evaluation October 2-3, 2012 JFC-Micro conducted a field survey in order to evaluate how the LDB has disseminated the 1st and 2nd seminar. We confirmed that the contents of the seminars have been widely spread to the whole of LDB by the efforts of the seminar participants.

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