Afghanistan's Central Bank takes control of top private bank

[Jana]

Afghanistan's Central Bank takes control of top private bank

August 31, 2010 1:3:50 PM
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Afghanistan's Central Bank has taken control of the Kabul Bank, which is partly owned by President Hamid Karzai's brother and has been beset by corruption allegations. The intervention aims to shore up Afghanistan’s largest private bank, whose faltering finances threatened to wreak both economic and political havoc.

Kabul Bank handles salary payments for Afghan soldiers, police and teachers, and has taken in more than $1 billion in deposits from ordinary Afghans. U.S. officials have long worried that trouble at the bank could trigger financial mayhem, a prospect that would leave Afghan security forces without pay, threaten unrest by angry -- and often armed -- depositors, and gravely undermine President Obama's entire Afghan strategy.

[B]The Central Bank has also ordered Kabul Bank's chairman to hand over $160 million worth of luxury villas and other property purchased in Dubai for well-connected insiders, according to Afghan bankers and officials.

Afghan authorities take over biggest bank to avoid meltdown

[BLS_1919v2.0]

It is common at times to see criminals launder their money even through banks and offshore accounts. I don't know how much this will do in alleviating corruption. Anyways, a strong central bank is an important part of a functioning state, and I wonder what reserves do they have (if any)?

[شمله ور خراساني]

Zakhelwal himself is a big thief. Its a well known fact that he is one of the top criminals in the Kharzai regime and a partner in all the corruption.

The reason why this bank is taken over is because the owner of Kabul Bank was building an empire of his own. And nobody is allowed to become too powerful.