Advanced Search
MyIDEAS: Login to save this paper or follow this series

Development of the Commercial Banking System in Afghanistan

Contents:

Author Info

  • Joshua Charap
  • Jelena Pavlovic
Registered author(s):

    Abstract

    Lending practices of commercial banks in Afghanistan were analyzed using CAMEL ratings. Statistically significant correlations were found: Banks with worse ratings (a) had more lending to domestic clients and (b) paid less tax. There was no statistically significant relationship between profits and total assets or between lending/assets versus profit/assets. Interviews of senior management of 8 banks accounting for about 90 percent of the commercial banking system corroborated evidence that poorly rated banks lend to domestic clients, whereas highly rated banks do not lend. Banks that lend extensively domestically engage in extra-judicial, non-traditional contract enforcement.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=23090
    Download Restriction: no

    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 09/150.

    as in new window
    Length: 28
    Date of creation: 01 Jul 2009
    Date of revision:
    Handle: RePEc:imf:imfwpa:09/150

    Contact details of provider:
    Postal: International Monetary Fund, Washington, DC USA
    Phone: (202) 623-7000
    Fax: (202) 623-4661
    Email:
    Web page: http://www.imf.org/external/pubind.htm
    More information through EDIRC

    Order Information:
    Web: http://www.imf.org/external/pubs/pubs/ord_info.htm

    Related research

    Keywords: Banking; Banking sector; Commercial banks; Financial sector; Profits; contract enforcement; banking system; bank size; bank lending; bankers; banking sector assets; bank failures; bank balance sheets; bank assets; foreign exchange; problem bank; risk exposure; excessive risk taking; bank of canada; bank use; capital regulation; banking law; bank credit; bank managers; bank officials; national bank; capital adequacy; banking systems; prudential regulation; excessive risk; loan concentration; banking supervision; bank regulation; bank management; foreign currency; bank loans; banking practices; bank capital regulation; bank restructuring; banking crises; risk assessment; nonperforming loans; bank operation; banking services; bank profit; banking operations; bank origin; bank failure; credit risks; payment in advance; bank data; bank manager; agricultural development bank; banks ? balance sheets; banking system assets; return on assets; bank problems; bank deposit; bank examinations; loan classification; bank staff; bank capital; bank interventions; bank policy; probability of default; bank supervision; banking laws; bank regulations;

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Simon Johnson & John McMillan, 2002. "Courts and Relational Contracts," Journal of Law, Economics and Organization, Oxford University Press, Oxford University Press, vol. 18(1), pages 221-277, April.
    2. Jose A. Lopez, 1999. "Using CAMELS ratings to monitor bank conditions," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, Federal Reserve Bank of San Francisco, issue jun.
    3. Marcel Fafchamps, 2003. "Spontaneous Market Emergence," Economics Series Working Papers, University of Oxford, Department of Economics 138, University of Oxford, Department of Economics.
    4. McMillan, John & Woodruff, Christopher, 1998. "Inter-Firm Relationships and Informal Credit in Vietnam," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2036, C.E.P.R. Discussion Papers.
    5. Fali Huang, 2006. "The Transition from Relational to Legal Contract Enforcement," Working Papers, Singapore Management University, School of Economics 23-2006, Singapore Management University, School of Economics.
    6. Arena, Marco, 2008. "Bank failures and bank fundamentals: A comparative analysis of Latin America and East Asia during the nineties using bank-level data," Journal of Banking & Finance, Elsevier, Elsevier, vol. 32(2), pages 299-310, February.
    7. Koford, Kenneth & Miller, Jeffrey B., 2006. "Contract enforcement in the early transition of an unstable economy," Economic Systems, Elsevier, Elsevier, vol. 30(1), pages 1-23, March.
    8. Rebel Cole & Jeffery Gunther, 1998. "Predicting Bank Failures: A Comparison of On- and Off-Site Monitoring Systems," Journal of Financial Services Research, Springer, Springer, vol. 13(2), pages 103-117, April.
    9. Levine, Ross & Loayza, Norman & Beck, Thorsten, 2000. "Financial intermediation and growth: Causality and causes," Journal of Monetary Economics, Elsevier, Elsevier, vol. 46(1), pages 31-77, August.
    10. Udaibir S. Das & Marc Quintyn & Kina Chenard, 2004. "Does Regulatory Governance Matter for Financial System Stability? An Empirical Analysis," IMF Working Papers 04/89, International Monetary Fund.
    11. Jun Qian & Philip E. Strahan, 2005. "How Law and Institutions Shape Financial Contracts: The Case of Bank Loans," NBER Working Papers 11052, National Bureau of Economic Research, Inc.
    12. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 21(2), pages 297-326, October.
    13. Joe Peek & Eric S. Rosengren, 1996. "Derivatives Activity at Troubled Banks," Boston College Working Papers in Economics, Boston College Department of Economics 358, Boston College Department of Economics.
    14. Jose A. Lopez, 1999. "How frequently should banks be examined?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, Federal Reserve Bank of San Francisco, issue feb26.
    15. Anuchitworawong, Chaiyasit, 2004. "Financial fragility under implicit insurance scheme: Evidence from the collapse of Thai financial institutions," CEI Working Paper Series, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University 2004-16, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    16. Clarke, George R. G. & Cull, Robert & Martinez Peria, Maria Soledad & Sanchez, Susana M., 2002. "Bank lending to small businesses in Latin America : does Bank origin matter?," Policy Research Working Paper Series 2760, The World Bank.
    17. Hamish R. Gow & Johan F. M. Swinnen, 2001. "Private Enforcement Capital and Contract Enforcement in Transition Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 83(3), pages 686-690.
    18. Poonam Gupta & Thierry Tressel & Enrica Detragiache, 2005. "Finance in Lower Income Countries," IMF Working Papers 05/167, International Monetary Fund.
    19. Chen, Zhiwu, 2003. "Capital markets and legal development: The China case," China Economic Review, Elsevier, Elsevier, vol. 14(4), pages 451-472.
    20. Marc J. K. De Ceuster & Nancy Masschelein, 2003. "Regulating Banks through Market Discipline: A Survey of the Issues," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 17(5), pages 749-766, December.
    21. Enrica Detragiache & Poonam Gupta & Thierry Tressel, 2006. "Foreign Banks in Poor Countries," IMF Working Papers 06/18, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:09/150. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.