The Central Bank of Afghanistan has cancelled the operating license of Pakistan’s Habib Bank Limited citing non-compliance of the bank with the banking laws of Afghanistan.

The governor of Central Bank of Afghanistan Khalil Sediq told Khaama Press that the audits of Central Bank of Afghanistan revealed numerous violations committed by Habib Bank were observed during the past ten years.

Sediq further added that the bank has also paid fines for the violations it had committed in the past ten years.

According to Sediq, one of the violations committed by Habib Bank Limited was the non-compliance of the bank to change its capital in Afghanis despite the Central Bank of Afghanistan repeatedly issued warnings in the past 5 years.

He said the Central Bank of Afghanistan issues operating licenses to foreign banks so that they can promote good banking in the country and contribute in economic development of Afghanistan.

However, he said the Habib Bank Limited has not only failed to contribute to economic development of Afghanistan but the bank has no given no loans to Afghan entrepreneurs.

The Central Bank Governor said it was decided to cancel the operating license of Habib Bank Limited considering the violations of the bank.

Habib was among several foreign banks which was operating in Afghanistan after the fall of Taliban regime.