ABA Participation In Islamic Banking Expert’s Council Session
Date: April, 11 2015
On April, 11 2015, an Islamic Banking Expert’s Council Session was held in Kabul with the initiative of Da Afghanistan Bank and cooperation of Harakat organization. In addition to Central Bank high ranking officials, Chairman of Afghanistan Banks Association (ABA), Executive Director Mr. Abdul Majeed Jabarkhail, CEO of Harakat, director and members of DAB’s Sharia supervisory board, members of Islamic banking and Sharia board of commercial banks and officials of Amani Consultative Corporation participated in the meeting.
Khan Afzal Hadawal acting governor and first deputy of Da Afghanistan Bank (DAB)while speaking on Islamic banking services expressed that we currently needs to provide Islamic banking services and by this way the economic growth will move upward and boosts potential access to finance. He added that banking law is all set now and we hope that it will be passed by national assembly sooner in order to be able to manage and provide Islamic banking services substantially.
The main purpose of this meeting was to discuss and consult on 23 draft regulation, Islamic banking Sharia products and parameters in Afghanistan. Islamic banking department has so far drafted 46 regulations, products, Sharia parameters and guidelines related to the Islamic banking in Afghanistan which is yet to be approved by Sharia supervisory board and the Supreme Council of Da Afghanistan Bank. 23 out of 46 drafts are ones that obligates country’s Islamic banks and Islamic banking departments in commercial banks to conduct and provide entire Islamic banking services within the scope of these regulations. Central bank’s Sharia supervisory board debated on 27 out of 46 cases of drafts in its February and March sessions and intends to talk and mull over the rest of 19 drafts in its upcoming 12th and 14th April meetings.
Taking into account the banks’ opinions and recommendations, Da Afghanistan Bank will translate these 46 draft issues into national official languages which will be then followed by its approval and enforcement. Approval of these 46 draft regulations, products, Sharia parameters, guidelines and manuals would pave the way for Islamic banking services like acceptance of client deposit, providing of loans for investment, commerce, production and banking services aimed at easing imports and exports, residential loan and other loans.
At the session a short meeting was held with Asad U. Zafari, Senior Advisor to Governor regarding property appraisal he agreed to meet ABA and FAIDA to assess how central bank and ABA can work together in this area.
