ABA Organized IBC Meeting with DAB First Deputy Governor
Date: June 13, 2017
On June 13, 2017, Afghanistan Banks Association (ABA) organized Islamic Banking Committee (IBC) meeting with H.E. First Deputy Governor, Da Afghanistan Bank (DAB) to address concerns of ABA member banks (Islamic Banking) in respect to Asset Classification and profit distribution based on Weightage.
In this meeting, H.E. Mr. Wahidullah Nosher, First Deputy Governor, DAB, Mr. Akhond Jan Rustaqi, Deputy DG (Islamic Banking) Financial Supervision Department, Other Concerned Officials of DAB's Accounting/Finance Department, Mr. Najibullah Amiri Executive Director ABA and ABA’s Islamic Standing Committee Members attended. The meeting was chaired by H.E. First Deputy Governor.
Agenda points:
1. Asset Classification
2. Profit Distribution based on Weightage
1. Asset Classification: ABA’s member banks (Islamic Banking) demanded that, in order to support IB in the country, the same Asset Classification and Provisioning Regulation implemented in conventional banking, should be applied by Islamic Banking. In this respect, Mr. Rustaqi added that asset classification and provisioning regulation with consideration of ABA inputs is in the stage of finalization (95% work has been completed) after approval will be shared with ABA-Islamic Banking Members.
2. Profit Distribution based on Weightage: Since, ABA member banks (Islamic Banking) faced some problems in respect to profit distribution based on weightage method, therefore, they approached ABA to raise the issue with DAB for resolution. In this regard, ABA previously had organized two meetings with DAB, by which ABA member banks delivered a presentation explaining their concerns. Based on consent of previous meeting with DAB, in this meeting, a comprehensive presentation was delivered by Deer Khan DAB Accounting in charge, on DAB weightage method. Finally, after long debates and arguments, it's concluded that, the Islamic member banks will review/analyze DAB's method and will have a final decision making meeting with DAB's first deputy governor along with their Islamic team to take the final decision.
At the end, Mr. Najibullah Amiri thanked DAB for supporting Islamic Banking in the country and urged ABA’s Member banks to review DAB method and come with their reasonable comments to identify and apply the best possible method.
