Chanthasouk, Sithong2025-09-182025-09-18https://hdl.handle.net/1885/733780669Thesis Title: Increasing the Effectiveness of Lao Bank Regulation: Can Smart Regulation Make a Difference? By Sithong Chanthasouk RegNet, ANU Abstract It is critical for the sustainable growth of the Lao economy that the banking system is both safe and sound. However, the Lao banking system remains fragile, and more effective regulation is needed. This study aims to identify a solution to enhance the effectiveness of Lao bank regulation, thereby promoting the safety and soundness of the country's banking system and effectively contributing to national socio-economic development. As a staff member of the Lao bank regulator, I inquire whether the concept of 'smart regulation', a form of regulatory pluralism, would increase the effectiveness of Lao bank regulation. To address this question, I identify the key features of Lao bank regulation that may have implications for the applicability of smart regulation. Using the viewpoints of key stakeholders, I examine the formulation of prudential requirements, enforcement, bank supervision, and resolution. Specifically, I examine how the Lao bank regulator utilizes various instruments and interacts with different stakeholders, as well as the dynamics of the regulatory powers generated within the public administration and bureaucracy of a socialist system. Applying a qualitative method using semi-structured interviews with key stakeholders and desk reviews, the study reveals that a 'power oriented' style is the defining feature of Lao bank regulation, and it has four key traits: selective responsiveness, lax enforcement, weak accountability, and difficult reforms. I argue that these traits limit the applicability of smart regulation and that the bank regulator needs to align the banking system with the public interest. The research findings not only highlight the significant challenges currently faced by Lao bank regulators but also provide practical recommendations to address these issues. The study contributes to regulatory discourse in a socialist, developing, and Southeast Asian context. It proposes further investigation into the typology of regulators and regulatory transparency, which may enhance the sustainability of the regulatory ecosystem.en-AU202510.25911/PSAH-X796