The Central Bank officials confirmed that another private banking firm, the Afghanistan Commercial Bank has gone bankrupt due to the violations of banking system.
Officials in the Central Bank of Afghanistan confirm that Afghanistan Commercial Bank has gone bankrupt.
Afghanistan Commercial Bank is the third private banking firm to go bankrupt in less than ten years.
According to reports, the dilemma of Afghanistan Commercial Bank dates back to 2012 when it was offering small loans under the license of BRAC Bank.
Meanwhile, the officials are saying that the bank has gone bankrupt due to major violations which existed since the start of its operations, including ambiguous, untraceable loans and withdrawal of the capital of the bank by its shareholders.
This comes as one of the largest banks of the country, Kabul Bank went bankrupt in 2010.
Kabul Bank was seized by the government in 2010 after the exposure of a staggering $900 million fraud, which led the International Monetary Fund to temporarily halt its hundreds of millions of dollars of loans to the country.