DA AFGHANISTAN BANK PUBLISHES NEW REGULATIONS FOR THE FINANCIAL SECTOR
Kabul, Afghanistan - In a move aimed at strengthening the country’s financial system, Da Afghanistan Bank has published new regulations governing the licensing and supervision of banks in Afghanistan.
New Regulations for Licensing and Supervision
The regulations, which came into effect yesterday, outline the procedures for issuing banking licenses and permits, as well as the requirements for foreign banks and bank holding companies to operate in the country.
Key Provisions
- Non-resident banks and bank holding companies may be permitted to have qualifying holdings in banks licensed by Da Afghanistan Bank, provided that such holdings or activities do not pose a threat to the orderly development and proper functioning of the national banking system (Article 4).
- Da Afghanistan Bank shall closely cooperate with foreign bank regulators on a basis of reciprocity, ensuring timely exchanges of information adequate to discharge its supervisory responsibilities while preserving the confidential nature of such information.
- Any person who acts in good faith while performing their duties under the law, including members of the Supreme Council of Da Afghanistan Bank, Governors, Deputy Governors, officers, employees, or agents of the bank, shall be immune from suit (Article 5).
Requirements for Obtaining a Banking License or Permit
The regulations outline the requirements for obtaining a banking license or permit, including:
- An initial authorized and paid-in capital of not less than 250 million afghanis.
- A two-stage licensing procedure for companies that are not yet established, which includes:
- Preliminary application stage
- Final application stage after the company has been established and registered
International Cooperation
Da Afghanistan Bank has been working closely with international financial institutions to develop these regulations, which are designed to promote transparency, stability, and efficiency in the country’s financial sector.