In Afghanistan, the governor of central bank has said that the nation's largest private bank has almost stabilized and could meet customer demands despite a nearly week-long run on the institution. Mr. Qadir Fitrat told reporters on Monday evening that the situation in Kabul Bank has almost returned to normalcy since Monday and no customer left the bank without money. Bank's customers began withdrawing their money in panic last week after reports that two of bank's top executives were replaced by the central bank for corruption, mismanagement and inappropriate lending procedures. The central bank head said President Hamid Karzai and his ministers decided to fully stand behind the troubled bank during regular cabinet meeting on Monday. He said the central bank and the government were ready to bail out the institution if necessary, but insisted the bank was solvent. Mr. Fitrat blamed local and international media for creating panic by misreporting the financial status of the bank. He said the banking system is very new in Afghanistan and any false report or rumors could create concerns among people.
News On AIR | September 7, 2010 11:34 AM