From behind the fortifications of blast barriers, sandbags, razor wire and armed guards, Afghanistan’s small but growing banking sector is emerging from the destruction of more than two decades of conflict. The range of available products and services is being broadened cautiously but the sector is severely hamstrung by the weakness of the legal and regulatory regime.
The attraction of the country varies. Providing services to the large number of foreign aid organisations and their workers is big business and Afghanistan’s increasing inter-regional trade is the spur for others. Yet others, like the domestically capitalised Kabul Bank, are being bold and launching simple credit products into the local market.