[QODLink]
Central & South Asia
Afghanistan 'takes over' Kabul Bank
Central bank governor says his department will control troubled Kabul Bank "for the foreseeable future".
Last Modified: 14 Sep 2010 14:54 GMT

The government said two directors of Kabul Bank have resigned in line with new financial regulations

A senior Afghanistan banking official says the central bank has taken control over Kabul Bank, the troubled lender facing allegations of corruption and mismanagement.

Abdul Qadir Fitrat, the central bank governor, said officials stepped in on Tuesday to take control of the country's biggest private financial institution "for the foreseeable future", because of suspected irregularities.

The Kabul Bank's two most senior directors now being investigated, he said.

He said that they have been forced to resign.

A brother of Mohammad Qasim Fahim, Afghanistan's first vice-president, is also under investigation, the governor said.

Afghanistan had previously frozen the assets of leading shareholders and borrowers at Kabul Bank, whose customers include about 250,000 state employees.

Corruption is one of the most common complaints from ordinary Afghans and Washington fears widespread corruption is boosting the Taliban-led armed campaign and complicating efforts to strengthen central government control so that US and other foreign troops can begin withdrawing.

Long queues of jittery customers have formed at the bank's branches since it became known in early September that two directors, who each own a 28 per cent stake in Kabul Bank, had quit.

Source:
Agencies
Topics in this article
People
Country
City
Organisation
Featured on Al Jazeera
The author argues that in the new economy, it's people, not skills or majors, that have lost value.
Colleagues of detained Al Jazeera journalists press demands for their release, 100 days after their arrest in Egypt.
Mehdi Hasan discusses online freedoms and the potential of the web with Wikipedia founder Jimmy Wales.
A tight race seems likely as 814 million voters elect leaders in world's largest democracy next week.
Featured
A vocal minority in Ukraine's east wants to join Russia, and Kiev has so far been unable to put down the separatists.
Iran's government has shifted its take on 'brain drain' but is the change enough to reverse the flow?
Deadly attacks on anti-mining activists in the Philippines part of a global trend, according to new report.
Activists say 'Honor Diaries' documentary exploits gender-based violence to further an anti-Islamic agenda.
As Syria's civil war escalates along the Turkish border, many in Turkey are questioning the country's involvement.
join our mailing list