Insecurity Undermines Private Banking in Afghanistan

Officials says if the insecurity continues it will financially damage the private banking system in the country.

Economy experts have confirmed the issue saying the private banks are experiencing serious problems while collecting the loans, because the properties were given to the Bank as guarantee the price has significantly came down that means ongoing insecurity has impacted badly.

Economy expert Zaiulhaq Zai said,” Da Afghanistan Bank should have regularly continued its supervisions on the pricing of the properties given to the Banks as loans, now the properties prices has indeed come down.”

Members at Private Union Bank urged that having no Institution to stabilize the property values have caused the private Banks to pay the prices now, if the war doesn’t end, Private Banks will definitely grow.”

Head of the Private Union Bank Najibullah Amiri said,” We face issues while collecting our loans, this has become general issue, there is no institution in Afghanistan to determine the values of the properties this way some of the Banks will financially damage.”

Meanwhile officials in Da Afghanistan Bank have rejected all the allegations for not having regular supervision.

Da Afghanistan Bank Spokesman Emal Ashoor said,” Our supervision continues, we refuse all the concerns about Private Banks.”

There are 15 private Banks are active in the country where half of the Banks are foreign Banks.

Reported by: Aslam Hejaab