Islamic Banking
Islamic Banking is the fastest growing segment of the Financial and Banking Industry in the World. New Kabul Bank as a biggest commercial bank in Banking operation in Afghanistan identifies and respects the desire of a growing number of its valued customers to conduct their banking and financial transactions in accordance with Islamic Law (Shariah), thus has launched the Islamic Banking Window providing Shariah-compliant products and services.
Our Shariah-compliant financial products and services range from simple deposits, through the operation of current accounts to more complex and innovative cutting-edge financing structures covering both personal and business banking.
For the customers who wish to maintain only current, who are not very focused on the returns but more for banking convenience and safety, Islamic banks use the contract of Qard al-hasan (benevolent loan) contract. Under these Shariah principle, the money deposited into this account is not subject to any risk in investment nor is exposed to profit or loss. The money is payable on demand. No interest is paid to the customer. However, it is not prohibited to give a hibah or gift or some reward which is not predetermined, at the end of the contract.
We aim to keep top 1st position in the future by launching new products into the market for individuals, businesses, NGO’s, Afghan citizens and foreigners.
Islamic Banking offers financing for corporate entities, consumer finance and plans to offer investment services for approved projects in the country, shortly as a part of our Strategic Investment Policy.
Low-risk funds based on short-term murabaha (cost + profit) operations of the banks, in both local and foreign currencies, would be best suited to risk-averse savers who cannot afford the possible losses of PLS (profit and loss sharing) based investments.
The small and medium enterprises (SME) sector has a great potential for expanding their production capacity, trading and employment. Islamic Banking Window may introduce SME-financing funds for various places in Afghanistan, enhancing the role of the financial sector in the development of the SME which can mitigate the serious problems of unemployment and the high level of dependence of imports of goods and services to Afghanistan in the future. Most appropriate contract with low risk that will be launch soon is murabaha financing (cost plus profit) car, house, equipment (machinery) or trade financing.
Aims, Objectives and Functions of Islamic Banking
