Commercial Banks Consultative Groups Meeting Was Held in DAB
Date: October 26, 2019
To address member banks problems on correspondent banking relationship and other regulatory area, induce lending as well as profitability of the banks, ABA and Da Afghanistan Bank (Central Bank of Afghanistan -DAB) conducted Commercial Banks Consultative Group (CBCG) Meeting on October 26, 2019. H.E. Mr. Wahedullah Nosher, DAB Acting Governor, ABA Chairman Mr. Salem Omaid /BOD Members, Respected Banks CEOs, Mr. Najibullah Amiri ABA Executive Director, and DAB Officials attended the meeting.
The agenda of the meeting focused on below points.
1. USD correspondent banking relationships
2. Five Days Mandatory Cleanup of ODs
3. FATCA reporting
4. FATF review
5. Consultation of DAB’s draft Regulations with the banking sector, before implementation
6. Shortage & Unavailability of USD currency in provincial Branches
7. Imposing Penalties
8. Freedom to banks to open booths without prior approval from DAB.
9. Interest Rate on Capital Notes
10. Repossessed assets
The meeting was chaired by DAB Acting Governor Mr. Wahedullah Nosher. At the beginning, Acting Governor DAB, briefed on his visit to the United States and noted that The Afghanistan Bank has successfully completed the economic program jointly with the International Monetary Fund. He stated that completion of the Credit Extension Facility (ECF) program was a major achievement.
After that, ABA Executive Director Mr. Najibullah Amiri and Banks CEOs shared banking sector concerns and recommendations on five days mandatory clean up, lack of corresponding banking relationships, FATCA reporting, establishing more facilities in the banking branches, interest on capital notes and many others. Consequently after discussion , most of banks recommendations were accepted by DAB in principle, where some points needed further discussions and elaborations where ABA and DAB will work together to resolve it. Mr. Nowsher added that Da Afghanistan Bank would take steps to improve matters considering existing laws and regulations.
