ABA meets UNDP Reps on attraction of Islamic banking/SME Support
Date: December 03, 2023
In order to attract assistance of international community for the development and growth of Islamic banking/SME prosperity in the country, ABA convened an online meeting with the UNDP office on December 03, 2023.
At the outset, Mr. Najibullah Amiri, Executive Director ABA, added: Although our economy, including the banking sector, experienced ups and downs after the political transformation, but with the cooperation of government, DAB and our nation, the situation is under control and is getting better day by day. Currently, banks have more than 8000 professional employees, modern banking system, equipped with international best practices. Banks are providing banking services for more than four million customers across the country and have made billions of dollars remittances in the import and export to improve business and people's lives. But despite that, there is far more need to strengthen and support the country's banking sector, which forms the basic foundations of the country's economy.
In order to support/finance SME businesses and address Islamic banking challenges, the following suggestions were made by ABA to UNDP.
1. Banks have financed hundreds of millions of dollars in important economic sectors such as industry, trade, agriculture, services, etc., which millions of dollars of the banks are still remained as non-performing loans (NPL)difficult to be obtained from borrowers. Therefore, it is requested that companies, especially small companies, be financially supported by UNDP to be able to settle their ex-loans and be eligible for new loans.
2. Islamic banking is a great opportunity for our compatriots, it is kindly suggested to cooperate in the field of Islamic banking products, technical and human capacity building of banks.
3. In the research and development of Islamic banking side, ABA and banks to be supported so that banking products and services are offered according to market needs. There is a need for international Islamic banking certificates such us as CIPA, CSSA, FAS, etc. for the employees of banks and ABA, so that banks can take the lead of Islamic banking at national and international forums.
4. Development of technology for the distribution and collection of loans plays a key role in reaching remote customers in villages and towns and expands access to financial services throughout the country, this sector also requires all-round cooperation.
Respected representatives of UNDP appreciated ABA recommendation, and promised to cooperate in the areas of strengthening Islamic banking - digitization of Islamic banking payments and capacity building of the banking sector. As soon in this month of December 2023, they will provide Islamic banking training online course to the banks.