| Dutch bank sets up shop in Kabul BBC
03/26/2004
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Dutch banking group ING has become the third foreign bank to open a branch in the Afghan capital, Kabul. ING is setting up and managing the Afghanistan International Bank on behalf of a consortium of Afghan and US investors. Initially the AIB will provide current account services and offer remittances, adding a further legal channel for Afghans to receive money from abroad. Pakistan National Bank and Standard Chartered already operate in Kabul. "AIB is looking not only to support multilateral and international agencies and the local business community, but also provide for the financing needs of overseas-based Afghan nationals as they look to repatriate money from around the world," said John Haye, the bank's chief executive. The bank opened its doors on 26 March, having received a licence earlier that week. Plans ING's initial responsibility to the investors - who are capitalising the AIB at $10m with the possibility of further money from the Asian Development Bank - is a three-year commitment to running the bank and providing senior executives. Later in 2004, the bank hopes to open ATMs and offer online banking facilities, which may again reduce the demand for informal hawaladars, or remittance merchants. After the first year, the plan is to add further branches outside Kabul, although that may depend on the security situation. ING has long experience of running banks on behalf of governments and other bodies in developing countries, via its Institutional and Government Advisory Group. The group is already working in Indonesia, Mongolia and Vietnam, among other countries.
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