[QODLink]
Central & South Asia
Afghanistan 'takes over' Kabul Bank
Afghan central bank governor said his department will control troubled Kabul Bank "for the foreseeable future".
Last Modified: 14 Sep 2010 13:10 GMT

The government said two directors of Kabul Bank had resigned in line with new financial regulations [Al Jazeera]

Afghanistan's central bank has taken control over Kabul Bank, the troubled lender facing allegations of corruption and mis-management, the central bank governor has said.

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

The Kabul Bank's two top directors now being investigated, Fitrat said, adding 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
An innovative rehabilitation programme offers Danish fighters in Syria an escape route and help without prosecution.
Street tension between radical Muslims and Holland's hard right rises, as Islamic State anxiety grows.
Take an immersive look at the challenges facing the war-torn country as US troops begin their withdrawal.
Ministers and MPs caught on camera sleeping through important speeches have sparked criticism that they are not working.
Featured
Anti-government secrecy organisation struggling for relevance without Julian Assange at the helm.
After decades of overfishing, Japan is taking aim at increasing the number of bluefin tuna in the ocean.
Chinese scientists are designing a particle-smashing collider so massive it could encircle a city.
Critics say the government is going full-steam ahead on economic recovery at the expense of human rights.
Spirits are high in Scotland's 'Whisky Capital of the World' with one distillery thirsty for independence.
join our mailing list