Jaweed Taqipor

Abstract

 

This study aims to determine why banks have not been able to provide comprehensive banking services and attract the trust of the Afghan people to the banking system.The banking system experienced different conditions in the past decades in Afghanistan. The first bank was established in 1939 in the country it failed to accomplish its mission due to the conflict and civil war. The new era for the banking system began in 2001. Since then, the economy is supported by 17 private and state banks which are currently operating in Afghanistan. Still, the banks tolerate challenges and cannot provide sufficient services to the people and require the government support and attention as well as people trust. This article illustrates challenges of banking system of Afghanistan and recommends solutions for the betterment of system in the country. Nowadays, problems like security, lack of people trust and informational gaps remain the outstanding challenges against the banking industry. In this research, qualitative method has been used due to its effectiveness for collection of the bank stakeholders’ ideas and also the banks customers for identification of problems and offering recommendations for developing a sustainable banking system.

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