ABA General Assembly was conducted
date: November 16, 2019
ABA Conducted the General Assembly meeting on November 16, 2019 on the following agenda points.
1. Correspondence banking relation and modalities
2. Insurance for member banks
4. KYC Norms and member banks views/consensus on relaxation from banks
The meeting was commenced by Mr. M Salem Omaid ABA Chairman and Mr. Najibullah Amiri ABA Executive Director Welcoming remarks.
Discussion and Conclusions:
1. Correspondence banking relation and modalities: Mr. Salem added that it is an opportunity for Afghan banks since most of the banks have problem in correspondent banking relationship.Luckily, as result of Da Afghanistan Bank effort, City Bank showed green signal to have correspondent banking relationship with Afghan Banks. A model bank has been proposed as good alternative for having NASTRO accounts.
2. Capital Note and Proposal of Banks on Possibilities of investment:
The agenda which raised by the Central Bank was that they will increase the interest rate on capital note subject that banks should attract AFN deposits and increase AFN lending not only relying on capital notes. “Mr. Salem Added”
Further Mr. Ray ABA Vice Chairperson stated that, banks have surplus fund to be deployed /invested in the financial instrument like tax exempted bond in the prioritized sector i.e. mining in the country, rather to invest this fund outside. The Sukok financial instrument for deployment of Islamic Banking surplus fund was also proposed in the meeting. The remaining agenda on insurance of banking sector and KYC Norms was discussed and certain action was proposed.