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Law scholars and attorneys in Afghanistan are filing reports with Magistrate on the situation there after the Taliban preemption. Then, a Staff Pressman for Magistrate in Kabul commentary on reports of a pending bank failure that would be the first since the Taliban took power in August. For sequestration and security reasons, we’re withholding our Pressman’s name. The textbook has been only smoothly edited to admire the author’s voice.
According to unofficial reports from Afghanistan’s central bank, Kabul- grounded Maiwand Bank will be closed in a many days if immediate and necessary liquidity/ cash isn’t fitted into it. One of my sources at the central bank says that this should have happed last week.
Lately, the UNDP issued a report assessing the status of Afghanistan’s banking and fiscal system previous to 15 August 2021 and during the once three months. The report said that after the seizure of power by the Taliban, the country’s fiscal and banking system is on verge of collapse. This comes posterior to transnational warrants under which Afghanistan’s reserves, including banking sector FX deposits at the central bank, were firmed; the SWIFT system and transnational plutocrat transfer were suspended; and AFN liquidity printing was intruded, causing a dramatic adverse shock in the fiscal and payment systems especially for original weak marketable banks like Maiwand Bank.
It was anticipated that the central bank would give the needed AFN liquidity to the marketable banks, especially weak banks, but it failed to do so. Thus, these banks failed to do the requested deposits in the country.
Lack of AFN and US bones liquidity has forced Maiwand Bank to close all of its branches in the country except the Kabul main branch and some limited number of branches. Maiwand Bank also closed other branches within Kabul and only operates in its head office in Kabul. Maiwand Bank indeed operates half a day in the head office since the Taliban preemption. They were unfit to make full deposits for their guests.
Maiwand Bank is also failing to collect its debts from businesses and systems due to current transnational warrants on the banking system of Afghanistan. My central bank connections also confirm that other state- possessed banks as well as the marketable banks are in the same situation as Maiwand Bank at the moment. For case, AIB, one of the stylish banks, has closed 16 branches out 36 branches in the country. Also, according my sources, Pashanty Bank, Afghan United Bank, and Ghazanfar Bank are other banks that are closing or will close their branches in Kabul and utmost of the businesses in the country.
