04 January 2015
KABUL (SW): Ahmad Seer Qureshi, the President of Private Banks’ Association said on Thursday the relative peace of past decade has nurtured the banking sector to the extent that the sector’s outreach has jumped to an unprecedented seven percent across the country.
The newly elected president of the association said this while addressing a press conference. He added that the net amount of funds circulating in the private banking sector has also soared to some 4.1 billion dollars.
“202 private branches are offering complete banking services while 216 more are offering limited banking services”, he said, adding that some 137 Automatic Transaction Machines have been placed on various points across the country to serve the public.
He noted that $ 492 million were being deposited in various private banks in saving accounts while the banks have issued around 130, 000 debit cards to its customers.
He, however, said the sector was still facing problems relating to the mortgage of property, illegal transfers via the traditional “hawala system” and some rules of the central bank.
Meanwhile, some experts of the economic affairs criticize the state of affairs in various private banks.
Taj Muhammad Akbar told SWRN the sector has not been properly regulated during the past one decade, leaving space for corruption at the higher levels. “People have no trust in the banking system and they prefer to withdraw all of their money instead of depositing it in the banks”, he said.
He also blamed the banking sector for not contributing towards the improvement of economy.
Presently, nine private banks, three public banks and four branches of international banks are operational in the country.
ENDS
