The Kabul times, Afghanistan Trustable News Agency.

DAB trying to encourage people to use Islamic banking

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By: Suraya Raiszada

Officials for Da Afghanistan Bank (DAB) say a particular unit of Islamic banking system has been created to persuade Afghans to use banking transactions as DAB has issued license for such banking system in the country.
Speaking to journalists in a news conference, first deputy of Da Afghanistan Bank Wahidullah Noshir said that based on information of the World Bank, 36 percent of Afghan nationals were not interested in banking transactions due to bank-related profits.
“Da Afghanistan Bank is making effort to develop banking transactions in the country and one of our principal efforts is to create a unit of Islamic bank within the DAB,” Noshir said, stressing that if 36 percent of Afghan citizens use banking transactions, money circulation will improve in the country.
He added that the bank was determined to involve all Afghans in banking transactions by providing them loans through Islamic banking system, saying that DAB in cooperation with the World Bank and the ministry of urban development would like to implement the program in the country. First deputy of Da Afghanistan Bank further said that DAB, along with Asian Bank, World Bank and the ministry of finance were working on cheque through which money would be collected from the people and the money would then invested on programs.
A number of Afghan economic experts by welcoming the bank’s step say it is a good opportunity for the people to do their transactions through Islamic banking system.
“A large number of private banks have been operating in the country for the past few years, but unfortunately most banks are working to get more profits for themselves,” said Saifuddin Saihoon, an Afghan economic expert.
Regarding to Islamic banking system, Saihoon said that the banking system should be sound and good so that the people could trust and do their transaction through banking, but most banks prefer to get more profits than their customers or subscribers.
Taj Mohammad, another Afghan expert believes that Islamic bank system is common in all Islamic countries where the people trust on and deposit their money in Islamic banks, but in our country most private banks are facing with problems and cannot deliver better banking services to their customers.
“Da Afghanistan Bank has taken a good step as most people are interested in depositing their money in banks. Besides creating a unit of an Islamic banking, DAB should further aware the people of benefits of the Islamic banking system and money transactions through Islamic banking so that the people prefer to their transactions through Islamic banking system in the country,” Taj Mohammad added. It is worth mentioning that Da Afghanistan Bank is the central bank of Afghanistan. It regulates all banking and money handling operations in Afghanistan. The bank currently has dozens of branches throughout the country, with five of these situated in Kabul, where the headquarters is also based. It is a wholly government-owned bank of Afghanistan which was established in 1939.

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The Kabul times, Afghanistan Trustable News Agency.