Afghan Banking System Facing Existential Crisis: UNDP Report

Afghan Banking System Facing Existential Crisis: UNDP Report
A Taliban fighter stands guard along a street near the Zanbaq Square in Kabul on Sept. 23, 2021. Wakil Kohsar/AFP via Getty Images
Naveen Athrappully
Updated:

The United Nations warned Monday that Afghanistan’s banking system is on the verge of collapse because of consumers unable to repay loans, fewer deposits, and other liquidity problems, leading to a social crisis in an already fragile economy.

“Afghanistan’s financial and bank payment systems are in disarray,” the United Nations Development Programme (UNDP) said in the three-page report. A bank run on deposits “must be resolved quickly to improve Afghanistan’s limited production capacity and prevent the banking system from collapsing.”

Naveen Athrappully
Naveen Athrappully
Author
Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.
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