2008年-世界发展银行全球_Expanding_the_Outreach_of_Financial_Services___The_Experience_of_Financial_Institutions_7页_200kb

Summary of the Document: Expanding the Outreach of Financial Services in Afghanistan

I. Context and Background

In 2002, Afghanistan's financial sector was inefficient and dominated by state-owned and specialized banks, many of which were bankrupt. The legal framework was either non-existent or inappropriate, and the Da Afghanistan Bank (DAB) lacked the capacity to effectively supervise the financial system. This created a pressing need for legal reforms, central banking modernization, and the development of a more robust financial infrastructure.

Reforms began in mid-2003, including the introduction of a new central bank law in September 2003, which aimed to establish a two-tier banking system (state and private commercial banks) and grant DAB autonomous regulatory power. Additional laws such as the Secured Transaction Law, Mortgage Law, and Negotiable Instruments Law were introduced to support the expansion of financial services to the private sector. These reforms, along with the development of a microfinance sector, are targeted at improving the enabling environment for financial services and the private sector.

Despite these efforts, financial services remain limited, and small and medium enterprises (SMEs) have very little access to bank credit. Afghanistan ranked 174th out of 175 countries in the 2007 Doing Business rankings for "Getting Credit," indicating a poor credit information and legal environment.

II. Case Studies

1. Reputable Private Investors

• Shafi Brothers and Kabul Trade Center: These business conglomerates, though profitable, remain outside the formal banking system due to the difficulty in obtaining loans and high interest rates. They prefer to self-finance their projects and are not interested in using bank loans.

2. Small & Medium Entrepreneurs (SMEs)

• Sabaoon Aryana Construction Company: Despite good business performance, the company could not secure a large UNOPS contract due to lack of an asphalt machine. It needs $250,000 in working capital, which is not available from banks.
• Ahmad Printing Press: The owner faces working capital shortages and borrows from friends at high interest rates (25–30%). The company has a good track record but is unable to expand due to financial constraints.

3. Microfinance Institutions (MFIs)

• BRAC Afghanistan (SEP Programme): BRAC is the largest MFI in the country, offering loans to small businesses ranging from $800 to $10,000. The program has been implemented in 10 provinces and 10 districts, with 979 outstanding loans totaling $869,100. BRAC requires collateral and savings, and its clients express a desire to eventually access BRAC Afghanistan Bank loans.
• Brotheren Ittehfaq Hardware Store: A BRAC SEP client who uses the loan for working capital and provides trade credit to other small businesses. He is interested in becoming a BRAC agent and expanding his business.

4. Kabul Bank

• Overview: Established in 2004, Kabul Bank has grown rapidly and is the leading commercial bank in Afghanistan. It has a deposit base of $348 million and a loan portfolio of $260 million.
• Constraints: The bank faces challenges such as the lack of a Credit Information Bureau (CIB), high collateral registration costs, and a shortage of qualified staff. These issues limit its ability to expand its loan portfolio and serve SMEs.

5. Bank Millie

• Overview: A state-owned commercial bank with a large capital base but a weak lending portfolio (53% non-performing loans). It has 21 branches and 545 employees, but only 125 passed a basic banking competence test.
• Constraints: The bank struggles with unskilled labor, outdated technology, and a lack of professional expertise. It is overstaffed with unqualified personnel and has difficulty attracting skilled professionals due to low salaries and local hiring mandates.

III. Analysis

• Risk Aversion in Banking: Banks in Afghanistan are risk-averse and reluctant to lend to new borrowers, even reputable ones, due to the lack of credit information and risk transfer instruments.
• Limited Access to Finance for SMEs: SMEs face severe constraints in accessing finance, especially working capital. This limits their growth, competitiveness, and employment generation.
• Role of MFIs: Microfinance Institutions (MFIs) such as BRAC have successfully expanded SME lending due to their ability to serve underserved markets, while commercial banks remain hesitant.
• Need for Legal and Institutional Frameworks: The absence of a strong legal framework and enforcement mechanisms (e.g., courts) hampers the development of the financial sector. A Credit Information Bureau (CIB) and legal reforms are essential for improving credit risk assessment and loan accessibility.
• Weak Human Resources: The banking sector suffers from a lack of skilled professionals, which affects operational efficiency and service delivery. Capacity building is crucial for the sector's development.

IV. Recommendations

• Improve Access to Financial Services: Develop innovative risk-sharing mechanisms, such as credit guarantees, housing loans, and leasing markets, to support SMEs and reduce reliance on informal financing.
• Establish a Banking Training Institute (BTI): To enhance the skills of banking and financial sector employees, including credit officers, managers, and administrators.
• Create a Credit Information Bureau (CIB): To centralize and improve the collection, processing, and storage of credit information, enabling better risk assessment and loan distribution.
• Strengthen Legal and Regulatory Frameworks: Enact and enforce the three key financial laws (Secured Transaction Law, Mortgage Law, Negotiable Instruments Law) to create a more supportive environment for formal financial services.

V. Questions for Discussion

1. What are the main reasons that large investors in Kabul avoid bank financing?
2. Why do commercial banks not see SMEs as viable market sources for investment, while MFIs like BRAC do?
3. What factors have contributed to the success of BRAC's SME lending program?
4. In the case of Bank Millie, which is more important: building local capacity or hiring international experts?
5. How serious is the problem of weak banking human resources, and what are the potential solutions?