Bank of Afghanistan
Vision And Mission of Da Afghanistan Bank
The vision of Da Afghanistan Bank is that of a monetary institution which upholds international best practice in fostering price stability and a sound financial system conducive to macro-economic stability, favorable investment climate, private sector development and broad-based economic growth.
The mission of Da Afghanistan Bank is to foster price stability and build a robust financial system.
Objectives of Da Afghanistan Bank
The primary objective of Da Afghanistan Bank is to achieve and maintain domestic price stability. Other objectives of Da Afghanistan Bank which are subordinated to the primary objective are: to foster the liquidity, solvency and effective functioning of a stable market based financial system, and to promote a safe, sound and efficient national payments system. Considering its main objective, Da Afghanistan Bank supports general economic policies of government and strengthens sustainable economic growth.
Main Tasks of Da Afghanistan Bank
The basic tasks, for which Da Afghanistan Bank is responsible to execute, are:
1. Formulate, adopt and execute the monetary policy of Afghanistan.
2. Formulate, adopt and implement currency policy and Afghanistan currency arrangements.
3. Hold and manage the official foreign exchange reserves of Afghanistan.
4. Print, mint and issue Afghani banknotes and coins.
5. Act as banker and adviser to, and as fiscal agent of the State.
6. License, regulate and supervise banks, foreign exchange dealers, money service providers, payment system operators, securities service providers, and securities transfer system operators.
7. Establish, maintain and promote sound and efficient systems for payments, for transfers of securities issued by the State or DAB, and for the clearing and settlement of payment transactions and transactions in such securities.
Core Values of Da Afghanistan Bank
Values are the undermining of Da Afghanistan Bank’s operations. They reflect DAB’s identity and influence DAB’s course and direction. Every DAB staff member is expected to exhibit the DAB core values in every task execution.
The core values of DAB are the following:
Commitment to serving public interest: Da Afghanistan Bank is committed to fulfilling the needs of the public.
Stakeholder Orientation: Da Afghanistan Bank takes pride in offering the best services to its stakeholders including the government for which it acts as a fiscal agent.
Ethics and integrity: Da Afghanistan Bank is committed to upholding professional ethics and integrity in all its activities.
Transparency: Da Afghanistan Bank accepts and welcomes public scrutiny of all its actions.
Leadership by Example: Da Afghanistan Bank is committed to practicing what it preaches at both the organizational and individual levels.
Team Work: Da Afghanistan Bank is committed to working together within and across organizational divisions.
Equity and Fairness: Da Afghanistan Bank is committed to the fair treatment of customers, employees and other stakeholders. This includes a conducive working environment and gender sensitivity.
Confidentiality: Da Afghanistan Bank maintains appropriate confidentiality in all transactions with its customers, employees and other stakeholders.
Monetary Policy of Da Afghanistan Bank
Introduction to Tasks and Objectives of the Monetary Policy Department
The primary objective of the monetary policy department is to achieve domestic price stability and to maintain stability in the exchange rate of national currency against the foreign currencies by formulating and implementing prudent monetary and exchange rate policies. Achieving such objective would not be possible in the absence of a stable national currency. Therefore, the central bank strictly monitors the exchange rate behavior and intervenes in the market under the managed floating exchange rate regime to minimize the impacts of sharp exchange rate volatility on the level of commodity prices as well as other macro-economic indicators.
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Financial Supervision Department of Da Afghanistan Bank
In late 2003, following the enactment of DAB Law and Banking Law, Financial Supervision Department (FSD) established to discharge the DAB regulatory responsibilities. Parallel with the growth and evolution of the activities in the banking sector, the FSD has also undergone major growth over the last decade. In 2003, the FSD used to consist of only 12 employees most of whom did not have banking supervision experience. During the following years, major efforts were exerted to increase the staff number and enhance the staff quality. A hiring program was launched to increase the FSD staff and was coupled with an intense training program, including online courses, on-the-job training and classroom instruction, both domestically and internationally. Training focused on a variety of relevant banking supervision topics, including: financial analysis; credit analysis; liquidity management; laws and regulations; asset/liability management; and computer skills. Between 2003 and 2008, banking laws and regulations were enacted, basic bank reporting requirements were established, on-site examinations were begun on a yearly cycle, and a quarterly offsite financial review process was begun. Initial policy and procedural manuals were developed for on-site examinations and supplemented with a training program.
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Market Operation Department of Da Afghanistan Bank
To implement monetary policy, develop financial markets, manage foreign exchange reserves, conduct weekly auctions in the most effective way, and to promote market stability both in foreign exchange and domestic money market.
Our primary responsibility is the implementation of the Bank’s reserves management policy in accordance to investment guidelines, conduct weekly FX and Capital Notes Auction to achieve Monitory Policy Objective, issue LC’s to Government and release official Central bank FX rates in accordance with established policies and procedures.
To know more: http://dab.gov.af/en/page/about-the-bank/departments/market-operation
Financial Intelligence Unit of Da Afghanistan Bank:
The Financial Transactions and Reports Analysis Center of Afghanistan (FinTRACA) was established as a Financial Intelligence Unit (FIU) under the Anti Money Laundering and Proceeds of Crime Law passed by decree late in 2004. The main purpose of this law is to protect the integrity of the Afghan financial system and to gain compliance with international treaties and conventions. The Financial Intelligence Unit is a semi-independent body that is administratively housed within the Central Bank of Afghanistan (Da Afghanistan Bank).The main objective of FinTRACA is to deny the use of the Afghan financial system to those who obtained funds as the result of illegal activity, and to those who would use it to support terrorist activities.
To know more :http://dab.gov.af/en/page/about-the-bank/departments/financial-intelligence-unit
Zones and Branches of Da Afghanistan Bank:
In past one decade, considering rapid changes in economy and financial arena in the world, DAB has tried to modernize and develop its all departments in the city and provincial branches in order to be able to uphold international best practices to achieve its overall objectives.
At the meantime some of new departments which were deemed necessary have been established during years past.
Following are the departments, zones and Provincial branches of Da Afghanistan Bank working in close collaboration with each other to achieve the overall objective of DAB.
Totally there are seven zones of DAB all over the country under which there are some central and provincial branches activating in which will be briefly introduced in following:
In the structure of seven zonal directorates of DAB there are totally 46 branches and teller counters throughout the country where 892 employees are employed in.
Organizational Structure of Central Zone Directorate in Kabul: Central office in its organization structure has six provincial branches and seven city branches and one teller counter.
To know more :http://dab.gov.af/en/page/about-the-bank/branches