Project
•Download as PPTX, PDF•
0 likes•108 views
causes of bank failure ( case study: Kabul bank Afghanistan)
Recommended
More Related Content
Similar to Project
Similar to Project (20)
Recently uploaded
Recently uploaded (20)
Project
- 1. Bank failures Case study: Kabul bank
- 2. CONTENTS: • WHAT ARE BANKS ? • BANK FAILUERS • CAUSES OF BANK FAILUERS • KABUL BANK • Clean-up • Privatization of New Kabul Bank • CANCLUSION
- 3. BANK The Bank is an institution which deals with money and credit. It accepts deposits from the public, makes the funds available to those who need them, and helps in the remittance of money from one place to another. FEATUERS: Dealing in money Dealing with credit Nature of agent
- 4. BANK FAILURE OCCURS WHEN A BANK IS UNABLE TO MEET ITS OBLIGATIONS TO ITS DEPOSITORS OR OTHER CREDITORS BECAUSE ITS INSOLVENT OR TOO LIQUEID TO MEET ITS LIABILITIES.
- 5. WHY BANKS FAILS ? Bad Loan Lending Bank Run Insolvency Systemic Risks Operational Risk
- 6. Historical journey • First failure: Philip 3 (1577) Spain • ThegreatDepressionfailure: in1930 • Saving& loans Crisis: of 1980& early 1990 • Crisis of 2008
- 7. KABUL BANK KB set up 2004 by group of share holders The largest bank – Bakht accounts $1.3bn depositors from >1m customers 112 branches – managed Gov payroll 2,300 employees After run $500m depositors remained
- 10. CBS& CEO General manager of kb Former member and fired from the Federal Bank of India Johnson Mallakkial Rappai Khaliullah Fruzi, Bank’s CEO Sherkhan Farnood
- 13. Audit of Bank
- 15. Kabul Bank earlier this month, with news breaking today that losses at the bank could reach US$900m, this would represent more than nine times the bank’s equity.
- 16. Privatisation Board Implementation Office Cabinet Privatisation Steering Committee Chair – NKB Chair MoF, DAB, NKB, MoJ Advisors The Public & Media Potential Investors Cabinet Privatization
- 17. Lack of regulations and specialists Mismanage of bank Political interference Incapacity Nepotism Reform bank laws Improve DAB supervision Adaptability of bank systems Rational decision making process Relative causes and lessons