Development of the Commercial Banking System in Afghanistan : Risks and Rewards / Joshua Charap, Jelena Pavlovic.

Format:

Book

Government document

Author/Creator:

Charap, Joshua.

Contributor:

Pavlović, Jelena.

International Monetary Fund. Middle East and Central Asia Department.

Series:

IMF Working Papers; Working Paper ; No. 2009/150

IMF Working Papers

Language:

English

Subjects (All):

Banks and banking--Afghanistan.

Banks and banking.

Afghanistan--Economic policy.

Afghanistan.

Physical Description:

1 online resource (30 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2009.

Language Note:

English

Summary:

Lending practices of commercial banks in Afghanistan were analyzed using CAMEL ratings. Statistically significant correlations were found: Banks with worse ratings (a) had more lending to domestic clients and (b) paid less tax. There was no statistically significant relationship between profits and total assets or between lending/assets versus profit/assets. Interviews of senior management of 8 banks accounting for about 90 percent of the commercial banking system corroborated evidence that poorly rated banks lend to domestic clients, whereas highly rated banks do not lend. Banks that lend extensively domestically engage in extra-judicial, non-traditional contract enforcement.

Contents:

Contents; I. Executive Summary; II. Introduction; III. Background and Literature Review; IV. Economic and Financial Developments in Afghanistan; A. The Post-Taliban Initial Conditions; B. Changing Profile of the Banking and Financial Sectors; Tables; 1. Consolidated Afghanistan Banking Sector Data; V. An Assessment of Risks And Rewards; Figures; 1. Assets and Deposits of the Banking Sector in Afghanistan; A. Quantitative Analysis; Balance Sheet Data; CAMEL Ratings and Correlation Results; 2. Ratio of Domestic Lending to Assets; Profits and Bank Quality

3. Correlation Between CAMEL Ratings and Gross Loans as Percent of Total Assets of Commercial Banks4. Correlation between Corporate Income Tax Paid and Total Assets of Commercial Banks; 5. Correlation between CAMEL Ratings and Corporate Income Tax Paid Divided by Total Assets; B. Qualitative Analysis; Survey Methodology; 6. Correlation between Lending / Total Assets and CIT / Total Assets; Survey Results; VI. Conclusion; References; Appendixes; I. Licensed Banks in Afghanistan; II. Questionnaire on Risk-taking by Commercial Banks Operating in Afghanistan- Addressed to CEOs/Top Management-

Notes:

"July 2009".

Includes bibliographic references.

Description based on print version record.

ISBN:

9786612843648

9781462320455

1462320457

9781452768229

1452768226

9781451872972

1451872976

9781282843646

1282843648

OCLC:

428976736