Central Bank Reform

ASI provided financial sector reform and capacity-building assistance to the Afghan Government over a period of years. This focussed on reform of the central bank and the commercial banking sector. Particular emphasis is being placed upon reorganisation of the central bank, supervision and building up IAS in the financial sector.
 
ASI carried out a range of activities to help modernise the Afghan Central Bank (DAB). For example we provided on-site technical assistance and advice to the accounting department, and to other appropriate departments and senior management of DAB in adopting a new Chart of Accounts (CoA) and accounting system. We helped DAB to develop its capacity to oversee the banking system to ensure that prudent banking practices evolve.  However, in addition to establishing governing regulations, it will also be necessary to analyze the corporate governance, risk management, internal control systems and internal audit, and the loan portfolios of the six currently licensed banks (so as to determining the, as yet, undefined capital adequacy of these institutions) as well as train local staff in portfolio review and bank examination techniques.