Result Based Management Framework - METAC

11
I. AFGHANISTAN
A. Banking Supervision
Past Activities
Historically, the TA provided by METAC to Da Afghanistan Bank (DAB) focused on
delivering training (seminars and workshops) mainly on bank management, internal
control and internal audit, risk-based supervision, bank licensing, offsite supervision
techniques and methodologies, and bank-wide risk management. DAB has also benefited
from substantial TA in banking supervision from other providers including the United
States Agency for International Development (USAID).
Over the last few years, and following the failure of Kabul bank, METAC assisted the
Financial Supervision Department (FSD) at DAB in strengthening their enforcement
framework for dealing with weak banks and the development of some banking
regulations in line with the new draft banking law. METAC has also assisted FSD in
preparing a medium-term strategic action plan to strengthen supervision and oversight of
the Afghan banking and financial sector. This was done in coordination with International
Monetary Fund (IMF) resident Monetary and Capital Markets Department (MCM)
experts at DAB. It also built on a recent restructuring of the FSD that was performed with
the assistance of the IMF experts.
Objectives
Work Program
The main objectives of METAC TA to DAB are to help in the implementation of the FSD
medium-term strategic plan. This involves capacity building for supervisors, enhancing
the offsite and onsite banking supervision methodologies, including establishing effective
techniques for dealing with weak banks, and streamlining the regulatory framework in
line with the new draft banking law and the latest Basel standards.
Outcomes
The main outcomes that are expected to be achieved are the following:
DAB has an enhanced risk-focused supervisory framework that addresses weak
and problem banks in an effective manner.