Directorate General of Public Credit Registration and Financial Services Development
The Directorate General of Public Credit Registration and Financial Services Development has been established within the framework of Da Afghanistan Bank (DAB), focusing on two main areas:
The Public Credit Registration is responsible for collecting and analyzing credit information for individuals and corporations (including borrower identification information, borrower background, and guarantees) and submits it to relevant institutions via credit reports.
The directorate collects the required information from different resources, including commercial banks and financial institutions, by registering public credit. Then submit it to the relevant entities as a consolidated report, consisting of customer categorization. Public registry-related activities are carried out in accordance with the law on mortgage of movable and immovable properties in banking transactions.
The Financial Services Development Section is responsible for increasing public access to official financial services, specifically providing financial facilities to low-income People. Furthermore, the main goal of the section consists of a range of tasks, including ensuring the rights of customers in commercial banks, improving the financial literacy and financial capacity of the country’s people, establishing a robust and dynamic environment for comprehensive economic growth, promoting and developing the culture of using formal financial services, alleviating the poverty, reducing the income inequality and efforts making for providing welfare for the public.
Vision:
The vision of the directorate is to prepare standard credit information under international norms and modern banking principles to provide intended credit services and ensure easy, safe, appropriate, cost-effective, high-quality, and sustainable access for the young population (those who are above the legal age), especially for low-income individuals and vulnerable and marginalized groups in society to formal financial services.
Objectives:
The objective of the directorate includes the collection, analysis, and provision of credit information of individuals and companies to financial institutions to improve transparency and reduce credit risk, increase public access to financial services, establish a robust and dynamic environment for inclusive economic growth, promote and develop the culture of using formal financial services, and elevate the level of the people’s welfare.
Tasks and Responsibilities:
The tasks and responsibilities of the Directorate General of Credit Registration and Financial Services Development encompass a range of crucial tasks, including preventing the use of fraudulent documents and applications for obtaining credit, empowering users to achieve better loan records, increasing public access to formal financial services, providing special financial facilities for low-income groups, ensuring customer rights in commercial banks, improving financial literacy and awareness among individuals in the country, creating a robust and dynamic environment for inclusive economic growth, promoting and strengthening the culture of using formal financial services, reducing banking fees and costs, and alleviating poverty and income inequality.
Furthermore, the directorate enables banks to manage credit risks effectively, provide mortgage–related information to third parties, and create the transfer of rights based on the date and time of the mortgage.
Organizational Structure:
The Directorate General of Public Credit Registration and Financial Services Development is headed by a Director General and includes two deputy directorates: the Deputy Directorate for Public Credit Registration and the Deputy Directorate for Financial Services Development. Each deputy directorate has its respective sections.
Deputy Director General for Public Credit Registration:
Public Credit Registration System:
Establishing a credit registration system is one of the significant developments in the banking sector, which previously did not exist. Its establishment is deemed an outstanding and effective measure, as credit information was traditionally collected by sending official letters and inquiries to financial institutions and related entities. This process led to wasting time, bureaucracy, and increased credit risks.
The Public Credit Registration System is a full-fledged electronic system and has been developed according to international standards. The system provides access to financial resources in the country, allowing financial fund applicants to benefit from its advantages. The Public Credit Registration System collaborates with financial institutions in reasonable lending decision-making, providing the required credit information to financial institutions and related entities without processing or wasting time.
The Public Credit Registration System collects and compiles the credit information of individuals from banks and microfinance institutions. After analyzing this information, it provides the relevant entities with credit reports. These reports help reduce credit risks and financing costs, thereby increasing access to funds across the country.
The Public Credit Registration System operates in accordance with the Da Afghanistan Bank law and the credit reporting regulations. Currently, all commercial banks and several microfinance institutions use this system.
System for Registering Mortgages of Movable Property
The DAB has established an electronic system for registering mortgages of movable property, in accordance with the Law on Mortgage of Immovable Property in Banking Transactions, for electronically recording mortgage announcements on movable assets.
This section provides the necessary facilities for an effective and transparent system to register mortgage announcements, focusing on two primary goals:
- To approve the priority of mortgage and publish mortgage announcements to inform third parties.
- To determine the priority of the mortgage based on the date and time of registration (determining priority).
Unlike title registration offices (such as property registration), the registration of mortgages of movable property in banking transactions does not create or transfer ownership rights. The registration authorities are not responsible for verifying competence or authenticity, and the accuracy or validity of the information provided in the registered announcement is limited to the following aspects:
- Identity of borrower
- Name and contact details of lender
- General or specific description of collaterals (mortgaged property)
Access to the system is free to everyone. Applicants can search the registration office online for free, 24/7. They can search using the borrower’s tax identification number (TIN), the Tazkira, or the passport number, depending on whether the debtor is a company or an individual.
- 2. Deputy Director General for Financial Services Development:
The Consumer Rights Protection and Grievance Redress Section is responsible for safeguarding the rights of customers in the financial sector, ensuring transparency in the provision of financial products and services, maintaining the confidentiality of customer data, promoting fair treatment of customers, and resolving complaints and financial disputes.
The section is tasked with analyzing and reviewing fees charged to financial customers by private banks and, when necessary, recommending to the financial services development. Moreover, it identifies legal and regulatory obstacles that may hinder the development of financial services.
Section of MSME and Agricultural Financing:
The section bears the responsibility for identifying financial issues in the micro, small, and medium enterprises (MSME) sector and agricultural financing, providing necessary and timely recommendations. It is also responsible for providing financial facilities to support small and medium enterprises (SME) and the agricultural sector, focusing on strengthening and offering both short-term and long-term financial facilities for SME and the agricultural industry.
Financial Innovation Section:
The section is responsible for developing appropriate plans for the growth of modern banking and collaborates and coordinates with relevant institutions to increase public access to financial resources in cities and villages. Moreover, the section focuses on expanding banking through representatives and developing digital access points (Automatic Teller Machine - Point of Sales) and other digital financial services throughout the country. In addition, the section develops plans to regulate non-cash transactions.