The economic activities in general and banking activities in particular were at low levels in Afghanistan prior to 2003. By the end of 2003, the Islamic Republic of Afghanistan & Da Afghanistan Bank (Central Bank of Afghanistan) took initiatives to promote the banking sector in the country and hence, resumed the licensing process for the formation and establishment of new local private banks as well as allowed foreign direct investment in Afghanistan banking sector and the opening of branches of foreign banks in the country.
Gradually, a number of banks came into existence and it became apparently clear that the growing banking sector needed to be organized itself for creation of united body representing all banks to serve as its mouthpiece in the dialogues with the DAB, government and other institutions. Thus, after consultation with DAB & other experts, the Afghanistan Banks Association (ABA) was established in September 2004.
Afghanistan Banks Association (ABA) is a non – political, non-government, non-profit and independent association formed by the local & foreign commercial banks branches striving for a strong, healthy and competitive banking industry in Afghanistan, representing the common interests of the banking sector.
ABA initially started with nine member banks and has been playing a constructive role in bringing the banking community together with a common goal of improving financial inclusion and the functioning of the banking system in Afghanistan. Currently, all licensed banks are members of the ABA. ABA looks forward for a sound and well developed banking and financial sector which will contribute immensely towards the economic and social growth of the citizens of the country.