basic bank information
ownership: Wholly owned by the Government of Afghanistan, with no public or private capital involved.
type: central bank, state-owned.
As a central bank, DAB does not directly provide financial services to the public, and its role is more similar to that of an executor and supervisor of economic policies, which is fundamentally different from that of commercial banks (such as deposits and loans).
name and background<
ul style="list-style-type: disc" type="disc">full name: Da Afghanistan Bank
founded: 1939
Headquarters location: Kabul, Afghanistan
Shareholder Background: Government of Afghanistan, State-owned Bank.
DAB was founded in 1933 as Afghan Mellie Bank, which became the central bank in 1939. It is Afghanistan's monetary policymaker and regulator of the financial system that has undergone numerous political and economic changes throughout its history, but has always maintained its core functions.
service scope<
ul style="list-style-type: disc" type="disc">coverage area: Afghanistan
number of offline outlets: about 52 branches, Seven of them are located in Kabul and are mainly used for policy enforcement and supervision.
ATM distribution: DAB does not provide ATM services directly, but supports the ATM network through commercial banks and payment systems such as Afghanistan Payments System (APS).
DAB ensures the implementation of monetary policy and regulatory measures through its branches, but its branches do not provide retail banking services to the public.
services & products
DAB, as a central bank, does not provide traditional banking services (e.g. deposits, loans) directly to individuals or businesses. Its main functions include:
formulating and implementing monetary policy, maintaining price stability, and targeting inflation of 2%-8%.
manages Afghanistan's foreign exchange reserves, with about $7 billion in assets frozen at the Federal Reserve Bank as of 2021.
printing and issuing the Afghani (AFN) currency.
acts as a bank and financial agent for the government in the affairs of the state's finances.
supervise and regulate banks and other financial institutions to ensure the stability of the financial system.
promote financial inclusion and microfinance, such as the National Conference on Microfinance in November 2024.
While DAB does not provide retail banking services directly, it indirectly ensures that individuals and businesses have access to savings, loans, and payment services by regulating and supporting commercial banks.
financial health
DAB's financial stability is backed by the government, and its assets include foreign exchange reserves and gold reserves, ensuring the effective implementation of monetary policy. In 2023, the total assets of the financial sector increased by 20.0% to FRW 1,068.7 billion, the capital adequacy ratio of the banking sector was 21.5% (minimum 15%), and the non-performing loan ratio was 4.1% (below 5%), indicating a healthy system.
technological innovation<
span style="font-family: sans-serif; color: black" >DAB is driving the development of electronic payment systems through the Afghanistan Payments System (APS), which supports mobile payments and digital financial services. In 2023, mobile payment users increased by 14% to 6,890,768, mobile transfer transactions increased by 57% to 603 million, and value increased by 49% to FRW 1,300.1 billion. The number of modern POS terminals increased by 130% to 337,211.
security measures<
ul style="list-style-type: disc" type="disc">Technical security: DAB uses strict cybersecurity measures to protect economic data and payment systems and ensure the stability of the financial system.
Other: As a central bank, DAB's security measures include physical security (protecting headquarters and branches) and internal controls (such as audit and compliance oversight). In November 2023, the Guidance on Climate-related and Environmental Financial Risk Management was issued, requiring financial institutions to identify and manage risks related to climate change.
featured services and differentiations<
ul style="list-style-type: disc" type="disc">Financial Inclusion: DAB actively promotes financial inclusion, is a member of the Alliance for Financial Inclusion, and supports microfinance through policies and programs. The number of bank deposit accounts increased by 54% to 4,553,086 in 2023; The number of microfinance accounts increased by 18% to 8,041,514.
Payment System Development: Through the Afghanistan Payments System (APS), DAB promotes the development of electronic payments and mobile financial services, driving Afghanistan towards a cashless society.
Monetary stability: DAB maintains the stability of the Afghani through monetary policy and reserve management, ensuring the macroeconomic stability of the economy.
International cooperation: DAB participates in international financial organizations and cooperation projects, such as the exchange with the Central Bank of Uzbekistan in February 2025.
conclusion<
span style="font-family: sans-serif; color: black">Da Afghanistan Bank, as the central bank of Afghanistan, plays a key role in maintaining economic stability and the health of the financial system. It ensures the macroeconomic stability of the Afghan economy by setting monetary policy, managing reserves, and supervising financial institutions. While it does not provide personal or business banking services directly, it indirectly contributes to the popularization and modernization of financial services by supporting commercial banks and promoting digital payment systems. The operation of the DAB exemplifies the typical functions of the central bank, and its efforts in financial inclusion and the development of payment systems provide important support for Afghanistan's economic development.
