A conference focusing on Islamic microfinance under the title ‘Islamic Finance Week of Afghanistan’ got underway in Kabul on Monday.
The conference, organized by the United Nations Development Program (UNDP) has brought together representatives of Da Afghanistan Bank (DAB), the Ministry of Industry and Commerce, UNAMA, ambassadors from some countries, representatives of the private sector, commercial banks, microfinance institutions, and representatives of various other financial and banking institutions, DAB said in a statement.
The four-day conference will discuss topics related to Islamic finance in Afghanistan, microfinance, job creation, poverty reduction, and financial inclusion.
Sidiqullah Khalid, the Director General of the Governor’s Office of DAB, said that despite many challenges, the Islamic banking sector is still in a developing and stable condition.
He added that guidelines and frameworks for transitioning from conventional banking to Islamic banking, adapted to Afghanistan’s conditions, have been developed by utilizing the experiences of other Islamic countries.
According to him, the level of public trust in banks is increasing day by day, and significant steps will be taken soon in the area of financial development.
“DAB has relations with several international institutions that work in the field of Islamic finance and banking, and DAB will also utilize the standards, financial products, and training programs of these international institutions, along with the experiences of other Islamic countries, to further strengthen the Islamic banking in the country,” he said.
Khalid also stated that microfinance institutions play an important role in diversifying financial products, particularly in providing access to financial products for small businesses, agricultural growth for farmers, facilitating business opportunities for small entrepreneurs, reducing poverty levels, creating job opportunities, and overall contributing to the economic growth and development of the country.
He added that the bank has developed and finalized a framework for the regulation and supervision of this sector. Individuals in all provinces of the country who wish to provide services to the citizens through microfinance institutions can obtain a license from DAB.
