Mohammad Sediq Nawabzada

Abstract

One of the frequently addressed problems for businesses, SMEs and investors is the lack of access to finance. Commercial banks are a vital part of the financial system, acting as intermediaries between depositors with excess funds and investors/borrowers with a deficit of funds for their economic activities. In addition to intermediation, commercial banks also provide a wide range of other services and facilities such money transfers, issue of letters of credit, issue of guarantee letters and similar to businesses, traders and investors. Thus, they help in promoting and expanding economic activities. This research study was conducted in Khost, Afghanistan, to examine the role of bank expansion in economic activities in this province. The main objective of the research is to analyze how the expansion of the banking sector has contributed to the promotion and expansion of businesses and economic activities in Khost. The findings of the research indicate that bank branches in Khost provide important banking services to their customers, although the branches do not have the authority to process loan applications or grant loans directly to their customers. There are seven bank branches, with a total of more than 22,000 customers and over 120 employees.

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