Result Based Management Framework - METAC

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DAB has an updated regulatory framework that establishes relevant limits and
adequate standards for the conduct of banking operations in line with best
practices and Basel principles for effective banking supervision.
The FSD staff have a good understanding of banking regulations, and possesses
the required skills to perform their functions effectively and efficiently according
to the new supervisory framework.
DAB has adequate supervisory and regulatory frameworks for the supervision of
Islamic banking activities in Afghanistan.
Outputs
The main outputs of the TA to enhance the banking supervision framework at DAB are as
follows:
Preparing a new risk-focused onsite inspection manual, and training onsite
supervisors on implementing the new manual.
Further enhancing the enforcement framework for dealing with weak and
problematic banks.
Preparing a manual for offsite supervision with a complete set of prudential
reports to monitor the financial performance of banks and the banking system and
train the supervisors on applying the new manual.
The main outputs that will be produced in the course of updating the regulatory
framework applied by DAB would be as follows:
Revising the capital adequacy regulation.
Reviewing the regulations on internal audit, internal control system, compliance,
and external audit function.
Developing regulations on risk management (credit, operational, liquidity, and
market) and updating the regulation on credit concentration limits.
One of the main TA outputs would be to deliver workshops and seminars for the staff of
FSD to build their capacity and enhance their knowledge in: risk focused supervision in
both onsite and offsite functions, dealing with weak and problem banks, risk
management, and Islamic banking.
The TA on Islamic banking would provide the DAB with the following:
Prudential regulations for operating and supervising Islamic banking products.