Investment capital of $20mn required for foreign banks opening in Afghanistan
Da Afghanistan Bank (DAB), Afghanistan’s Central Bank, has changed regulations for foreign banks following closure of the Standard Chartered Bank and Punjab Bank in Afghanistan.
The investment capital needed for a foreign bank to start up in Afghanistan is increased from USD 5mn to USD 20mn.
This comes as foreign banks’ performance in Afghanistan has shown a decline in Afghanistan and two major banks closed their operations in Afghanistan.
A number of economic analysts have expressed concerns that withdrawal of foreign banks could dissuade further foreign investment in Afghanistan.
In the meantime, the Afghanistan Banks Association (ABA) do not see any negative consequences arising from the exodus investment capital requirement.
“At the moment, our domestic private banks are doing well. But the services provided by foreign banks in Afghanistan are very limited, therefore, they have decided to leave Afghanistan, but it does not affect our economy,” Tolo News quotes deputy executive director of ABA Najibullah Amiri.
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By Ahmad Masoud Kabul, 16 March 2013: Consumers Rights and Services Organization (CRSO) and Peace and Human Rights Organization (PHRO)