Commercial banks can be used to lend money to commercial businesses, such as banks, and also as a source of funding for small businesses.
This has long been seen as an ideal role for the country’s commercial banks, which are typically seen as providing a stable and efficient financing structure for small-scale businesses.
But, with a recent move by the government to allow the banking sector to expand beyond the banking industry, many analysts and former officials in the sector have questioned the need for commercial banks in Afghanistan.
In fact, many in the industry have expressed concerns about the role the government’s banking policy could play in further undermining the economy and undermining confidence in the system, and the ability of Afghan businesses to repay loans.
One senior bank official told Al Jazeera that the current policy in Afghanistan is “very dangerous for our economy”.
“It is very dangerous for the economy, it is very damaging for the banking system, because now if we need a loan, we will not be able to do so,” the bank official said.
The former bank official added that the decision to allow commercial banks to expand to the banking and investment sector, which was the mainstay of Afghanistan’s economic growth before the Taliban came to power, had created “a situation where there is a big gap between commercial banks and the banks”.
“And that’s why the situation is so critical, because the country is now in crisis, the country has no financial infrastructure,” the former bank employee said.
“The economy is in the process of collapsing.
There is no banking system.
The financial sector has collapsed.
So, we have to understand how the country can recover from that situation.”
The bank employee added that many Afghans do not trust the banking institutions and banks in the country.
“When you see the government issuing new regulations, the bank employees are not going to be happy.
They do not like the government, they do not want to be part of a government that is interfering in their business, and they are not used to the current situation, and this situation is going to continue until the government and the financial institutions are removed from the economy,” the senior bank employee told Al Arabiya.
The bank staffer added that “there are a lot of problems” in Afghanistan’s banking sector, including the “disproportionate number of banks, the lack of quality of lending and the lack.
of trust in the banks” among its clients.
“Afghan banks are a small number of the financial sector, and it’s a very fragile situation.
It’s going to take a long time before there is confidence in banking in Afghanistan,” the official said, explaining that “the banking system is not as good as the financial services sector, it’s not as secure, it needs a lot more investment to recover from this crisis.”
The current situation also creates the potential for corruption.
Al Jazeera’s Amina al-Hashimi, reporting from Kabul, said the recent announcement of a $1.3bn commercial bank by the Afghan government was a “very positive development” but added that it does not change the fact that Afghanistan remains plagued by corruption.
“For many Afghans, the government has been the biggest obstacle to their livelihoods,” Hashimi said.
Afghanistan has a long history of corruption and the government does not always do its part to curb it, she added.
Al-Hashemi said the announcement of the commercial bank could help to ease the financial burden of the country, but the government needs to do more to prevent corruption in the banking sphere.
“This will certainly help the economy recover, but it won’t be enough.
The banking sector is the backbone of the economy.
So even if it gets some cash, they will be very short-changed.
And if it is not possible for banks to meet the demand, the financial system will collapse,” she said.
Hashimi also pointed to the ongoing economic crisis in the Afghanistan economy as one of the reasons for the current financial crisis.
“There is no doubt that the economy is struggling, and that the government is not doing enough,” she added, referring to the countrys economy and the recent decision by the country to allow banks to continue expanding.
Al Hashimi noted that while the Afghan economy is “under pressure”, it is still a “relatively stable” economy.
“It still has some stability, but you still have to take into account the economy’s fragility, its vulnerability, and how it can withstand a crisis,” she told Al Shabaab.
Al Qaeda’s new ‘prince’ The announcement of commercial banks could be seen as a “direct signal” from the Taliban, according to Al Jazeera.
In a statement issued on Sunday, Taliban spokesman Zabiullah Mujahid said the new bank was “the first step towards creating a strong, stable and sustainable financial system for Afghanistan.”
He added that his group “will work closely with commercial banks”.
The Taliban statement also noted that the announcement “will also be a good