April 2015-

Issue#14

ABA E-Newsletter

Upcoming Events

Access to Finance Business

to Bank Roundtables in

Kabul/Other Provinces,

Afghanistan

ABA is Supported

By

ABA Conducted Access to Finance

Business to Bank Roundtable in

Badakhshan Province

Afghanistan Banks Association (ABA), with support from

USAID's “Financial Access for Investing in the Development

of Afghanistan” (FAIDA) project organized a two-day ABA-

Access to Finance Business to Bank Roundtable event in

Badakhshan province in April 6-7, 2015.

The roundtable targeted the enterprises operating in

Badakhshan Province by facilitating access to finance by

linking them with banks and Microfinance Institutions

(MFIs) in the area. The roundtable provided the enterprises

the opportunity to exchange viewpoints and identify

challenges and opportunities regarding their improving

productivity and access to finance. During the two day

event, representatives from the Afghan Government

Directorates of Economy and Women Affairs, representatives

from the Badakhshan Chamber of Commerce and Industries,

private sector (included traders, professions, producers

and handicraft business), the Central Bank (DAB), ABA

member banks and Microfinance Institutions (MFIs)

exchanged views and sought to undertake financing

transactions.

Objectives:

Contact us

To contribute

articles, submit ideas

or other inquiries,

please contact Edrees

Alimy at alimy.edrees@

aba.org.af.

Improve access to finance for enterprises doing

business in Badakhshan province through targeted

discussions and meetings between relevant

stakeholders

Link enterprises with the financial institutions.

DAB representative in Badakhshan, ABA member banks and MFIs

delivered presentations on their products and services.

Moreover, banks/MFIs had roundtable discussions with the

businessmen explaining their lending procedures, rates of

interest, credit appraisal and other issues concerned with

the banks’ loan facilities. From ABA, Mr. Edrees Alimy,

Research Associate participated in the event to represent

ABA. Mr. Alimy delivered a speech on ABA activities and

achievements; member banks products and services, the role

that ABA and its member banks play in the development of

Afghanistan’s financial sector, and the importance of

Access to Finance (A2F) Business to Bank (B2B) roundtables

in improvement and expansion of businesses. In the event,

the business community suggested that banks should expand

financing to Badakhshan province, especially in terms of

Islamic loans. They also recommended that banks must

conduct comprehensive research on need-based loans. As

result of the B2B round table discussions, seven (7)

potential loans with estimated worth of USD 430,000 were

discussed in agriculture and handicraft businesses.

Event: Access to Finance Business to Bank Roundtable,

Badakhshan

Venue: Qasere Kokcha, Badakhshan

Date: April 6-7, 2015

Photo by: Monitoring and Evaluation Field Monitor, FAIDA

ABA Meeting with DAB on Islamic

Banking Regulations and Products

On Wednesday, April 1, 2015 ABA management had meeting with

DAB officials on Islamic banking products and regulations.

The objective of the meeting was to inform member banks

regarding the upcoming Expert Review Session, which will

held on April 11, 2015 on Islamic banking regulations and

products. In the meeting, DAB requested ABA to inform

member banks with Islamic window to speed up review of

Islamic banking regulations and products and to share their

feedbacks and comments with ABA. Mr. Najibullah Amiri, ABA

Deputy Executive Director, suggested that, ABA will call

member banks to convey the message and will urge the

importance of an expert review session on products and

regulations of Islamic baking. It was requested from ABA,

to assist DAB in developing agenda for the session.

Furthermore, it was also agreed that for the expert review

session, sharia board members and Islamic banking officials

of ABA Member banks be invited.

ABA Meeting with Administrative Office

of the President

On April 7, 2015, ABA had meeting with Private Sector

Relation Department of the President office. Mr.

Shokrullah, Head of Private Sector Relation Department of

the Administrative Office of the President (AOP), mentioned

that the purpose of this department is:

a. Address of issues related to private sector

b. Building relationships

c. Supervision of the private sector

Below are problems and suggestions provided by the ABA

chairman:

A quarterly meeting should be held between H.E Mr.

President and head of commercial banks to discuss

the challenges faced by the financial industry.

Creation of different courts for banking sector, to

resolve disposal of collateral in quick manner.

The government does not give due attention to the

resolution of banking issues. .

Regulatory capital currency conversion and its

ramifications for banks.

Banking law should be amended to meet current

banking environment.

The Supreme Council of DAB should meet regularly

with banks, in order to understand banks problems.

DAB should not only be the regulator, but also an

engine for financial sector development and should

make sure sound environment exists for the financial

industry to grow.

A proper capacity building program should be

organized and implemented for Financial Supervision

Department (FSD) at DAB to enhance the capacity of

FSD staff to professionally supervise banks.

Few examples were shared regarding creating of

provision for disposal of collateral.

Event: Meeting Event: Meeting with the Administrative Office

of the President

Venue: ABA Office, Conference Hall

Date: April 7, 2015

Photo by: Jamal Naser ABA IT/Web Designer

ABA Participation in Islamic Banking

Expert’s Council Session

On April, 11 2015, an Islamic Banking Expert Council

Session was held in Kabul at the initiative of Da

Afghanistan Bank and with the cooperation of the Harakat

organization. In addition to DAB officials (Mr. Khan Afzal

Hadawal Acting Governor, Mr. Matiullah Faieq General

Director, Financial Supervision), Mr. Ahmed Siar

Khoreishi, Chairman of Afghanistan Banks Association

(ABA), Mr. Abdul Majeed Jabarkhail, ABA Executive Director,

Mr. Naseem Akbar, CEO of Harakat, DAB’s Sharia supervisory

board, members of Islamic banking and Sharia board of

commercial banks, and officials of Amanie Advisors

participated the meeting.

H.E. Khan Afzal Hadawal, Acting Governor and First Deputy

Governor of DAB while speaking on Islamic banking services

mentioned that Afghanistan currently needs to provide

Islamic banking services and by this way the economic

growth will move upward. He added that the banking law is

all set now and he hopes that it will be passed by National

Assembly sooner (as opposed to later) to enable banks to

increase their range of Islamic banking services.

The main purpose of this meeting was to discuss and consult

on 23 draft regulations, Islamic banking Sharia products

and parameters in Afghanistan. The Islamic banking

department has so far drafted 46 regulations, products,

Sharia parameters and guidelines related to the Islamic

banking in Afghanistan which is yet to be approved by

Sharia supervisory board and the Supreme Council of Da

Afghanistan Bank. 23 out of 46 drafts are ones that

obligates country’s Islamic banks and Islamic banking

departments in commercial banks to conduct and provide all

Islamic banking services within the scope of these

regulations. The Central Bank’s Sharia Supervisory Board

debated on 27 out of 46 cases of drafts in its February

and March sessions and intends to mull over the rest 19

drafts in its upcoming 12th and 14th April meetings.

Taking into account the banks’ opinions and

recommendations, Da Afghanistan Bank will translate these

46 draft regulations into national official languages which

will be then followed by their approval and enforcement.

Approval of these 46 draft regulations, products, Sharia

parameters, guidelines and manuals would pave the way for

Islamic banking services like acceptance of client deposit,

providing of loans for investment, commerce, production

and banking services aimed at easing imports and exports,

residential loans and other loans.

At the session, a short meeting was held with Mr. Asad U.

Zafari, Senior Advisor to DAB Governor regarding property

appraisal. He agreed to meet ABA and USAID’s FAIDA to

assess how the Central Bank and ABA can work together in

this area.

Event: Islamic Banking Experts’ Council Session

Venue: Da Afghanistan Bank ( Central Bank of Afghanistan)

Date: April 11, 2015

Photo by: DAB Communication In charge

ABA Executive Director Participated in

Afghanistan -Pakistan Women Business

Conference

Mr. Abdul Majeed Jabarkhail, ABA’s Executive Director,

participated in the four-day Annual Afghanistan-Pakistan

Women Business Conference held April 20-23, 2015 in

Islamabad, Pakistan. The conference was jointly organized

by the Commercial Law Development Program (CLDP) of the US

Department of Commerce, in partnership with United States

Agency for International Development (USAID), US Embassy

in Islamabad, US-Pakistan Women’s Council and Governments

of Afghanistan and Pakistan.

The objective of the four-day conference was to strengthen

the competitiveness of Afghan and Pakistani business women

and to increase Afghanistan-Pakistan cross-border trade

and investment. In this event, ABA Executive Director

delivered a presentation on Financing Opportunities for

Afghan Business Women and took part in panel discussion.

Event: Afghanistan -Pakistan Women Business Conference

Venue: Marriot Hotel Islamabad, Pakistan

Date: April 20-23, 2015

Photo by: http://krg.com.pk/gallery/afghanistan-pakistan-

womens-business-conference/

ABA Meeting with Foreign Bank Branches

on Their Problems

On April 13, 2015, Mr. Abdul Majeed Jabarkhail, ABA’s

Executive Director, and Mr. Naveed Hadawal, ABA’s Member

Service Coordinator, had a meeting with Mr. Jalal Hussain

Banghash, the newly appointed country operations head of

Habib Bank Limited. The meeting was part of ABA efforts to

improve coordination between ABA and member banks and

further to pin point the issues of the member banks with

regards to the Laws and Regulations of Central Bank of

Afghanistan.

Mr. Banghash mentioned that ABA is a bridge between the

member banks and DAB. He admired the activities of the ABA

overall, and mentioned that with ABA is playing pivotal

role in solving member banks issue with DAB and other stake

holders.

Subsequently, on April 14, 2015, Mr. Jabarkhail, ABA’s

Executive Director, and Mr. Naveed Hadawal, ABA’s Member

Service Coordinator, had a meeting with Mr. Gohar Ali Shah

the newly appointed Country Manager of National Bank of

Pakistan (NBP), to provide an overview of ABA

activities. Mr. Jabarkhail mentioned that ABA will be

organizing the CBCG meeting next month and for that we will

be seeking from all ABA members, issues and problems to be

raised with DAB.

Mr. Gohar also discussed the current scenario of banking

in Afghanistan and mentioned that while there might be some

hurdles for banks, there are also plenty of opportunities

for the banks. On the same day, Mr. Jabarkhail and Mr.

Naveed Hadawal had a meeting with Mr. Sarfaraz Nazir, the

Country Head of Bank AlFalah Ltd and the Board Member of

ABA. Mr. Sarfaraz discussed about the future plans for ABA.

Mr. Sarfaraz mentioned that ABA is in its development stage

and there is a need to do lot more to improve it, although

ABA was efficient in some of the banking sector matters.

However, the members, expect more from ABA. Mr. Sarfaraz

mentioned that while ABA had a meeting with H.E Khan Afzal

Hadawal and he agreed on some matters of ABA member bank,

we still did not receive any thing in writing from DAB.

ABA Meeting with AJSSP

On April 20, 2015, ABA had meeting with Afghanistan Justice

Sector Support program (AJSSP) supporting Ministry of Women

Affairs (MOWA) in women economic empowerment. Mr.

Najibullah Amiri briefed the participants about ABA’s role

and activities. Mr. Abdullah Aziz AJSSP Project Management

Advisor also discussed about activities and support of the

AJSSP to MOWA. Mr. Aziz further mentioned that MOWA is

planning to organize an Access to Finance (A2F) event for

women economic empowerment, and since all banks are the

members of ABA, requested ABA to have a coordination

meeting with MOWA prior to A2F event and share ABA

experiences with MOWA in arranging such event.

Mr. Amiri mentioned that ABA will always support such

events and will invite the member banks to take part in

A2F event for business women. Mr. Amiri urged that it would

be great if MOWA allot time to ABA in agenda to presents

itself and its members. Mr. Azizi expressed agreement and

will soon arrange a coordination meeting between ABA and

MOWA.

Event: Meeting with JSSP on Access to Finance for Women

Venue: ABA Office

Date: April 20, 2015

Photo by: Mr. Jamal Naser ABA IT/Web Designer

Other News Highlights

ABA Releases its 12th Issue of E-Newsletter

On April 18, 2015 ABA released its 12th issue of E-

Newsletter to over 1,400 subscribers, including VIP and

VVIPs inside and outside of the country. The ABA’s E-

newsletter contained Access to Finance (A2F) Business to

Bank Roundtable in Mining Sector in Kabul, ABA and its

member banks meeting with US Department of the Treasury at

the US Embassy, ABA’s Member Banks Meeting with PAHNA Group

on Mortgage Regulation, Afghanistan Payment System (APS)

Coordination Meeting with DAB, ABA and Mobile Network

Operators (MNOs) meeting, ABA’s Participation in Women in

Business Conference in Kabul, and Afghanistan's Central

Bank signs MOU with UAE’s Central Bank. The following

chart depicts top locations by opens.

ABA Participation in Cooperation Agreement Signed

between Bank –e- Millie Afghan and Afghan National

Enterprise Board

On April 12, 2015, Bank-e-Millie Afghan (BMA) inked a

cooperation agreement with Afghan National Enterprise

Board at a conference held on this regard. The conference

was attended by Ahmad Zia Masoud, President’s Special

Representative for Reforms and Good Governance, H.E. Khan

Afzal Hadawal, First Deputy Governor and Acting Governor

and First Deputy Governor of DAB and Mr. Gul Maqsood Sabet

Deputy Ministry of Finance, Mr. Khanjan Alkozai Vice

Chairman, Afghan Chambers of Commerce and Industry (ACCI)

and national entrepreneurs.

According to this agreement, national traders can access

funds within short-term and long-term loans easily and

transparently from BMA which will further pave the ground

for investments along with productive occupations for

numerous of Afghans and can finally lead to economic growth

in the country.

H.E. Khan Afzal Hadawal, who also attended the conference,

laid emphasis on soundness of the banking system as saying,

presently, that Afghanistan’s banking system is fully

reliable and provides services in line with international

standards and there is no concern over outbreak of another

crisis like that of Kabul Bank.

Mr. Hadawal also added that now Afghanistan’s banking

sector has approximately AF 244 billion assets and once

this amount is invested or utilized by private sector it

could significantly bring growth to various economic

sectors.

Later on, Ahmed Zia Masoud, President’s Special

Representative for Reforms and Good Governance said that,

once the Cabinet Members are all introduced, Government

would initiate work on establishment of economic

infrastructure and a new economic stage would come to

existence.

At the end, Mr. Ahmed Khesraw Zia, Acting Chairman of BMA

while signing this agreement said that, it will provide

one to three year term loans for traders and private sector

with a 5% lower interest rate compared to market rate on

monthly basis.Resource

Event: Cooperation Agreement Signed between Bank Millie

Afghan and Afghan National Enterprise Board

Venue: Bank-e-Millie Afghan

Date: April 12, 2015

Photo by: Bank-e-Millie Afghan

Public Credit Registry Project Completion Seminar

On April 26, 2015, the DAB conducted a one day seminar on

Public Credit Registry (PCR) in Serena Hotel, Kabul. The

program was held with technical support from Harakat. The

speakers emphasized that PCR will enable potential

borrowers to have greater access to finance and increase

credit penetration in the country. During the seminar, DAB

Acting Governor Mr. H.E Khan Afzal Hadawal, Mr. Najibullah

Amiri, ABA’s Deputy Executive Director, Mr. Naseem Akbar,

CEO of Harakat, Mr. Ibrahim Shams Acting President of AISA

and Mr. Naser Ahmad Yousefzai Director General, PCR talked

about the importance of the project for the future.

Event: PCR Project Completion Workshop

Venue: Serena Hotel, Kabul

Date: April 26, 2015

Photo by:

https://www.facebook.com/PublicCreditRegistry/photos