ABA Contributed in Enrichment of Collateral Guideline
Date: March 17, 2018
Afghanistan Banks Association conducted member banks meeting on March 17, 2018 to
review and discuss Guideline on Banks Loan Collateral of Da Afghanistan Bank (DAB)
Topics discussed:
1- Types of collateral
2- Acceptable collateral
3- Valuation of collateral
4- Registration and documentation of collateral
5- Securing SME loans
6- Supervision of collateral
7. Collateral reporting
8- Bank policies on collateral
9- Miscellaneous provisions
The meeting was attended by CEO of AIB Mr. Anthony Barned, CCOs, SME Manager, Head of Micro-finance of Member banks and ABA management.
Under the chairmanship of Executive Director of ABA, Mr.Najibullah Amiri, the representatives of respective banks reviewed the entire document, taken into consideration safety and profitability of the banks in short run as long run, market condition, where after detailed discussion, the guideline was amended and shared with DAB for consideration & approval. This collateral guideline on banks’ loan collateral will improve framework for secured lending and give useful instruction on various collateral issues toward mitigation of credit risk.
