Afghanistan Private Banks Union has informed of increasing in the country’s bank deposits in the past one year.
This comes amid of concern over reports of weak banking system caused by political and economic changes in the country.
Following major change in the country’s political and economic spheres over the past 15 months, Afghanistan’s banking system has been seriously impacted as most people stormed to the country’s
private banks to withdraw their savings. Besides, the political and economic changes have also impacted international transactions and normal banking services in the country.
After 16 months, now the country’s private banks informed of some improvement in banks deposits in the country.
According to Afghanistan Private Banks Union, ordinary people have started to visit private banks; therefore, the private banks deposits have started to rise in the past one year. Meanwhile, a number of Kabul residents by expressing happiness about some improvement in the country’s banking system say normalization
of the banking system relates to the country’s current stable situation.
“We’re happy that banking system has now improved as we can go for depositing and withdrawing our savings in the country’s private banks,” said Nasir and Milad, two residents of Kabul.
They said in the days immediately after the collapse of the former government, thousands of people stormed to the banks to withdraw their savings.
In weeks, banks then started to run dry of cash and have subsequently been unable to conduct most normal
services including international transactions.
They added that with passing each single day banking system would improve and more people would go for deposits in the country’s banks, which could help in economic development of the country, asking the Islamic Emirate to further support the private banks and pay particular attention to the banks’ security.
Meanwhile, Najibullah Amiri, head of the Afghanistan Private Banks Union, by informing of some improvements in the country’s banking system has said that the number of people visiting the private
banks for depositing their savings have increased in the past one year.
“Currently, most private banks have no problems in liquidity as limitations have gradually lifted and work
spheres of banks are almost normal,” Amiri said, adding that the country’s private banks are optimistic of more improvement in the near future.
According to Afghanistan Private Banks Union, bank deposits have increased by 4 percent during the third quarter of the year 2022. Also, the people’s savings have increased by 3.8 percent, showing that the number of people visiting the banks has increased and this considered as good news in economic development.
Based on the order of the country’s central bank, ordinary customers or subscribers can withdraw $1,200 of their savings each months. Meanwhile, companies can withdraw $25,000 of their savings or part from the bank in a month.
It is worth mentioning that twelve banks, including three state-owned institutions, seven private banks and two branches of international banks were operating in the country ahead of the fall of Kabul.