As the Lao PDR takes steps to establish its capital markets, several key participants are involved in the effort:

• The Bank of the Lao PDR (BOL) has the authority to issue bills and bonds to manage the exchange rate and liquidity in the economy. BOL is also responsible for licensing and overseeing financial institutions.
• The Department of Domestic and Foreign Investment is a one-stop service that oversees investment licensing and manages investment promotion.

Pension funds, insurance companies, and other nonbank financial institutions have recently started to invest in bonds. Insurance companies and social security organizations will likely be the major initial investors. The Social Security Organization (SSO) of the Lao PDR oversees employees’ social security funds and began investing in treasury bills in 2006.

Other key participants in the financial sector include state commercial banks, private banks, foreign bank representative offices, and the National Treasury under the Ministry of Finance (MOF).