Financial Sector Development (WG1), 2nd meeting

The PriSEC’s Financial Sector Development Working Group held its second meeting hosted by the Ministry of Finance on 23 December 2020.

The purpose of this meeting was to discuss 8 reforms with the priority of the financial sector development working group.


These reforms are as follows;

  • Reduce banks’ security costs (20% of all security contract) to allow financial institutions expand their branches and reduce service charges
  • Transfer Citizen Charter (CC) bank accounts from DAB to commercial banks
  • Compulsorily adoption of fire insurance on 3 sectors (telecom, finance, and health) in Kabul city
  • Support financial institutions in providing banking services (leasing) for MSME in primary sectors such as agriculture, industry, and housing
  • Expand PCR coverage by integrating data from utility companies including, Telecom Companies, DABS, MFI and similar other institutions
  • Establish a One Stop Shop for recovering banks’ default loans
  • Develop Banks’ Resolution Framework
  • Strengthen the real estate appraisal (pricing) mechanism in compliance with local appraisal standards, the training system and the issuance of appraisal licenses, and the establishment of a real estate information center and real estate transactions.

As a result of the discussions, the 8 mentioned reforms were finalized and divided into sub-activities. The participants presented their views on these reforms and were tasked with the relevant institutions to work together to implement these reforms and report on the progress of activities in the next meeting.


Also, the first reform program, which is about reducing the security costs of banks, was examined. In order to implement these reforms, the relevant departments were tasked to carry out a comparative analysis of banks’ security spending figures and partner with the leadership of the respected national public protection enterprise for the necessary decisions.


In this meeting, representatives of the Ministry of Finance, Da Afghanistan Bank, Afghanistan Women’s Chamber of Commerce and Industries, Ministry of Urban Development and Lands, Investment Facilitation Unit, Ministry of Economy, Union of Afghan Banks, Financial Dispute Resolution Commission, General Directorate of Insurance Management, General Directorate of Insurance and Takaful Affairs, International Chamber of Commerce, Afghanistan Chamber of Commerce and Investment, Afghanistan Small Loans Association, Agricultural Development Promotion Fund, Afghanistan Debt Guarantee Fund, National Public Protection Enterprise, First Vice President of Afghanistan and PriSEC working group specialist had participated.

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