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CONTENTS EXECUTIVE SUMMARY ...... XIV GLOBAL ECONOMIC ENVIRONMENT ...... 18 I. ADVANCED ECONOMIES ...... 18 1.1.1 The United States Economy ...... 18 1.1.2 The Economy of United Kingdom ...... 20 1.1.3 The Economy of Germany ...... 21 1.1.4 The Economy of France ...... 21 1.1.5 The Economy of Japan ...... 22 II. EMERGING MARKET ECONOMIES ...... 23 1.2.1 The Economy of China ...... 23 1.2.2 The Economy of India ...... 24 1.2.3 The Economy of Turkey ...... 25 MONETARY AND CAPITAL MARKET DEVELOPMENT ...... 29 I. MONETARY PROGRAM...... 29 II. MONETARY AGGREGATES ...... 31 III. NET INTERNATIONAL RESERVE ...... 32 IV. FROEIGN EXCHANGE MARKET ...... 33 V. OPEN MARKET OPERATION & LIQUIDITY CONDITIONS ...... 33 2.5.1 Foreign Exchange Auction...... 33 2.5.2 Capital Note Auction ...... 34 2.5.3 Required and Excess Reserves ...... 34 INFLATION TREND AND OUTLOOK ...... 39 I. CONSUMER PRICE IN AFGHANISTAN ...... 39 3.1.1 Developments in National Headline CPI ...... 40 3.1.2 Developments in Kabul CPI ...... 43 II. NEAR TERM INFLATION OUTLOOK ...... 47 EXTERNAL SECTOR DEVELOPMENTS ...... 51 I. BALANCE OF PAYMENTS ...... 51 4.1.1 Current Account Balance ...... 51 4.1.2 Capital Account ...... 52 4.1.3 Financial Account ...... 52 4.1.4 Merchandise Trade ...... 53 II. DIRECTION OF TRADE ...... 53 III. COMPOSITION OF TRADE ...... 55 4.3.1. Composition of Imports ...... 55 4.3.2. Composition of exports ...... 56 IV. EXTERNAL DEBT ...... 57 V. NET INTERNATIONAL RESERVES...... 58 FISCAL DEVELOPMENTS ...... 66 I. BUDGET EXECUTION RATE...... 66 II. BUDGET DEFICIT ...... 66 III. REVENUE COLLECTION ...... 66 5.3.1 Tax Revenue ...... 67
V
5.3.2 Non-tax Revenues ...... 68 IV. GRANTS ...... 68 V. EXPENDITURE ...... 69 BANKING SYSTEM PERFORMANCE ...... 73 I. ASSETS OF THE BANKING SYSTEM ...... 74 6.1.1 Gross Loans ...... 75 6.1.2 Loan Loss Reserves ...... 76 6.1.3 Distribution of Credit ...... 76 II. CLASSIFICATION OF LOANS ...... 78 6.2.1 Non-performing loans ...... 78 6.2.2 Adversely-classified loans ...... 78 6.2.3 Loans classified Watch ...... 79 6.2.4 Loans classified loss ...... 79 6.2.5 Interbank Claims ...... 79 6.2.6 Investment ...... 80 6.2.7 Cash in Vault and Claims on DAB ...... 80 III. LIABILITIES...... 80 6.3.1 Deposits ...... 80 6.3.2 Borrowings...... 82 IV. LIQUIDITY ...... 82 6.4.1 Liquidity Ratio (broad measure) ...... 83 V. CAPITAL ...... 83 VI. PROFITABILITY ...... 83 IV. FOREIGN EXCHANGE RISK...... 86 VII. INTEREST RATE RISK ...... 86
VI
LIST OF FIGURES
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Message From the Governor
“Da Afghanistan Bank (DAB) policies/efforts are geared towards protecting the most vulnerable segments of society by focusing on price stability -DAB’s primary mission- through implementing a sound and effective monetary policy”
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LQGLFHV RI FORWKLQJ LQFUHDVHG WR SHUFHQW 12.0 WKDQ SHUFHQW KRXVLQJ 9.0 HOHFWULFLW\ ZDWHU DQG JDV XS WR SHUFHQW 6.0 IURP SHUFHQW IXUQLVKLQJ DQG KRXVHKROG 3.0 JRRGV URVHWRSHUFHQWIURPSHUFHQW 0.0 -3.0 DQGWUDQVSRUWDWLRQ XSWRSHUFHQWWKDQ -6.0 SHUFHQW -9.0 Overall Index Food and beverages Non-Food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he Inflation Trend and Outlook 42 [DA AFGHANISTAN BANK QUARTERLY Third Quarter, 1395 ECONOMIC AND STATISTICAL BULLETIN] Table 3.2: Breakdown of National Headline CPI (Percent changes quarter-on-quarter) (March 2011 = 100) )< )< )< 4 4 4 4 4 4 4 4 4 4 4 2YHUDOO ,QGH[ )RRG DQG EHYHUDJHV %UHDGDQG&HUHDOV 0HDW 0LONFKHHVHDQGHJJV 2LOVDQGIDWV )UHVKDQGGULHGIUXLWV 9HJHWDEOHV 6XJDUDQGVZHHWV 6SLFHV 1RQDOFRKROLFEHYHUDJHV 1RQ)RRG 7REDFFR &ORWKLQJ +RXVLQJ )XUQLVKLQJDQGKRXVHKROGJRRGV +HDOWK 7UDQVSRUWDWLRQ &RPPXQLFDWLRQ (GXFDWLRQ ,QIRUPDWLRQDQG&XOWXUH 5HVWDXUDQWVDQG+RWHOV 0LVFHOODQHRXV 6RXUFH &HQWUDO6WDWLVWLFV2IILFH0RQHWDU\3ROLF\'HSDUWPHQW'$%VWDIIFDOFXODWLRQ 3.1.2 Developments in Kabul CPI 3.1.2.1 Annual Developments 7KH WUHQG RI PRYHPHQW LQ .DEXO &3, LQ WKH SHUFHQW REVHUYHG LQ WKH VDPH TXDUWHU RI WKH WKLUG TXDUWHU RI ZDV GLIIHUHQW WR WKDW RI SUHYLRXV\HDU WKH QDWLRQDO LQGH[ :KHQ PHDVXUHG RQ \HDU :KLOH LQIODWLRQ LQ IRRG LWHP LQFUHDVHG QRQ RYHU\HDUEDVLVLQIODWLRQLQWKHFDSLWDOVOLJKWO\ IRRG FDWHJRU\ UHSUHVHQWHG ORZHU UDWH ZKLFK GHFOLQHG WR SHUFHQW IURP SHUFHQW FRQWULEXWHGWRORZHUKHDGOLQHLQIODWLRQ UHFRUGHG LQ WKH SUHYLRXV TXDUWHU EXW VLJQLILFDQWO\KLJKHUWKDQDGHIODWLRQUDWHRI The Inflation Trend and Outlook 43 [DA AFGHANISTAN BANK QUARTERLY Third Quarter, 1395 ECONOMIC AND STATISTICAL BULLETIN] Figure 3.3: Kabul CPI (Y-o-Y) )RRG LQGH[ H[KLELWHG D IRXUTXDUWHU VWULQJ RI 11.0 LQFUHDVLQJWUHQGDQGUHDFKHGWR SHUFHQWLQ 9.0 6HSWHPEHU KLJKHU IURP SHUFHQW LQ WKH 7.0 VHFRQGTXDUWHUDQGSHUFHQWFDOFXODWHGLQ 5.0 WKHWKLUGTXDUWHURI,QIODWLRQDU\HIIHFWVLQ 3.0 WKLV LWHP SDUWLFXODUO\ FDPH IURP PHDW SULFH Percenta1.0 ge LQGH[ XSWRSHUFHQWIURPSHUFHQW -1.0 RLOV DQG IDWV SULFH LQGH[ XS WR SHUFHQW -3.0 IURP SHUFHQW SULFH LQGH[ RI IUHVK DQG -5.0 GULHG IUXLWV LQFUHDVHG WR SHUFHQW IURP SHUFHQW DQG YHJHWDEOHV LQGH[ URVH Overall Food and beverages WRSHUFHQWIURPSHUFHQW Non-Food 6RXUFH &HQWUDO6WDWLVWLFV2IILFH'$%VWDIIFDOFXODWLRQ Table 3.3: Breakdown of Kabul Headline CPI (Percent changes year-on-year) (March 2011=100) :HLJKW 4 4 4 4 4 4 4 4 4 4 4 2YHUDOO ,QGH[ )RRG DQG EHYHUDJHV %UHDGDQG&HUHDOV 0HDW 0LONFKHHVHDQGHJJV 2LOVDQGIDWV )UHVKDQGGULHGIUXLWV 9HJHWDEOHV 6XJDUDQGVZHHWV 6SLFHV 1RQDOFRKROLF EHYHUDJHV 1RQ)RRG 7REDFFR &ORWKLQJ The Inflation Trend and Outlook 44 [DA AFGHANISTAN BANK QUARTERLY Third Quarter, 1395 ECONOMIC AND STATISTICAL BULLETIN] +RXVLQJHOHFWULFLW\ ZDWHUDQGJDV )XUQLVKLQJDQG KRXVHKROGJRRGV +HDOWK 7UDQVSRUWDWLRQ &RPPXQLFDWLRQ (GXFDWLRQ ,QIRUPDWLRQDQG&XOWXUH 5HVWDXUDQWVDQG+RWHOV 0LVFHOODQHRXV &RUH LQIODWLRQ 3 70 &RUH LQIODWLRQ +HDGOLQH H[FO%9& 29) DQG 7 6RXUFH &HQWUDO6WDWLVWLFV2IILFH0RQHWDU\3ROLF\'HSDUWPHQW'$%VWDIIFDOFXODWLRQ $IJKDQLVWDQಬV)LQDQFLDO The Inflation Trend and Outlook 45 [DA AFGHANISTAN BANK QUARTERLY Third Quarter, 1395 ECONOMIC AND STATISTICAL BULLETIN] QRQIRRG LQIODWLRQ ZHDNHQHG WR SHUFHQW Figure 3.4: Kabul CPI (Q-o-Q) 8.0 IURP SHUFHQW REVHUYHG LQ WKH SUHYLRXV 6.0 TXDUWHU ZKLFK UHIOHFWV ORZHU SULFHV LQ WKH 4.0 PRVW VLJQLILFDQW FRPSRQHQWV 3ULFH RI KRXVLQJ HOHFWULFLW\ ZDWHU DQG JDV ZKLFK 2.0 KROGV WKH KLJKHVW ZHLJKW LQ WKH &3, IHOO WR 0.0 Percenta ge SHUFHQW IURP SHUFHQW ,Q DGGLWLRQ -2.0 SULFH RI IXUQLVKLQJ DQG KRXVHKROG JRRGV -4.0 VOLJKWO\ OHVVHQHG WR SHUFHQW IURP -6.0 SHUFHQW 2Q WKH RWKHU KDQG FORWKLQJ KHDOWK DQG WUDQVSRUWDWLRQV UHFRUGHG KLJKHU SULFH Overall Food and beverages IURPWKHLUSUHYLRXVPRQWKಬVYDOXH Non-Food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he Inflation Trend and Outlook 46 [DA AFGHANISTAN BANK QUARTERLY Third Quarter, 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NET INTERNATIONAL PLOOLRQLQWKHWKLUGTXDUWHURIWKH)< RESERVES LQFRPSDULVRQZLWK86' PLOOLRQUHFRUGHG LQWKHWKLUGTXDUWHURIWKH)< $FFRUGLQJ WR WKH ODWHVW DYDLODEOH GDWD WKH 1HW 7KH WRWDO ORDQ DPRXQWV SD\DEOH WR WKH 3DULV ,QWHUQDWLRQDO 5HVHUYHV 1,5 LQFUHDVHG E\ &OXE FUHGLWRUV LQ WKH WKLUG TXDUWHU RI WKH )< DERXW SHUFHQW VWDQGLQJ DW 86' VWRRG DW 86' PLOOLRQ ZKLFK LV PLOOLRQ LQ WKH WKLUG TXDUWHU RI WKH )< XS SD\DEOHWR5XVVLDQIHGHUDWLRQ IURP86'PLOOLRQWKDWZDVUHFRUGHGLQ ,QRWKHUZRUGV$IJKDQLVWDQಬVWRWDOGHEWIURPWKH WKH FRUUHVSRQGLQJ TXDUWHU RI WKH ODVW \HDU 3DULV FOXE PHPEHUV VWDQGV DW DERXW 7DEOHDQG)LJXUH SHUFHQWRIWRWDOFXUUHQWH[WHUQDOGHEWZKLFKKDV 7KHLQFUHDVHLQWKHOHYHORI1,5ZDVPDLQO\GXH LQFUHDVHG VOLJKWO\ E\ SHUFHQW FRPSDUHG ZLWK WRWKHUDLVHLQUHVHUYHDVVHWVZKLFKERRVWHGE\ FRUUHVSRQGLQJTXDUWHURIWKHODVW\HDU SHUFHQW WR 86' PLOOLRQ LQ WKH WKLUG 7RWDO GHEW IURP PXOWLODWHUDO FUHGLWRUV WR TXDUWHU RI WKH )< IURP 86' $IJKDQLVWDQGHFUHDVHGWR86'PLOOLRQ PLOOLRQLQWKHFRUUHVSRQGLQJTXDUWHURIODVW\HDU External Sector Developments 58 [DA AFGHANISTAN BANK QUARTERLY ECONOMIC Third Quarter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igure 4.14: Net International Reserves FXUUHQF\ZKLFKLQFUHDVHGE\DOPRVWSHUFHQW during the past period (In Million USD) WR86'PLOOLRQLQWKHWKLUGTXDUWHURIWKH )< IURP 86' PLOOLRQ UHFRUGHG LQ 8000 6,678.62 6,693.65 6,601.51 6,767.80 WKHVDPHTXDUWHURIWKHSUHYLRXV\HDU 6000 4000 7KHXVDJHRI)XQGಬV5HVRXUFHVGHFUHDVHGE\ 2000 DOPRVW SHUFHQW WR 86' PLOOLRQ LQ WKH 0 WKLUG TXDUWHU RI WKH )< IURP 86' FY-1392 FY-1393 Q3-1394 PLOOLRQ LQ WKH FRUUHVSRQGLQJ TXDUWHU RI WKH )< Q3-1395 6RXUFH &62DQG'$%VWDIIFDOFXODWLRQV Table 4.1:Merchandise Trade in (Million USD) ,PSRUWV ,QGXVWULDOVXSSOLHV )XHODQG/XEULFDQWV &RQVXPHUJRRGV &DSLWDOJRRGVDQGRWKHU ([SRUWV &DUSHWV 5XJV )RRG,WHPV /HDWKHU :RRO 0HGLFDOVHHGV RWKHUV 7UDGH%DODQFH 7UDGH%DODQFHDVRI*'3 6RXUFH 0RQHWDU\3ROLF\'HSDUWPHQW'$% External Sector Developments 59 [DA AFGHANISTAN BANK QUARTERLY ECONOMIC Third Quarter, 1395 AND STATISTICAL BULLETIN] Table 4.2: Afghanistan Balance of Payments in (Million USD) ,WHPV &XUUHQW$FFRXQW &UHGLW 'HELW *RRGV$FFRXQW &UHGLW 'HELW 6HUYLFHV$FFRXQW &UHGLW 'HELW ,QFRPH$FFRXQW &UHGLW 'HELW &XUUHQWWUDQVIHUV &UHGLW 'HELW &DSLWDODQGILQDQFLDODFFRXQW &DSLWDODFFRXQW &UHGLW 'HELW &DSLWDOWUDQVIHUV &UHGLW 'HELW )LQDQFLDODFFRXQW 'LUHFWLQYHVWPHQW 3RUWIROLRLQYHVWPHQW $VVHWV /LDELOLWLHV 2WKHULQYHVWPHQW $VVHWV /LDELOLWLHV 5HVHUYH$VVHWV 1HWHUURUVDQGRPLVVLRQV 6RXUFH &62DQG'$%VWDIIFDOFXODWLRQV External Sector Developments 60 [DA AFGHANISTAN BANK QUARTERLY ECONOMIC Third Quarter, 1395 AND STATISTICAL BULLETIN] Table 4.3: Direction of External Trade: for the third quarter of the FY 1395 in (Million USD) ([SRUWV 3 6KDUHV ,PSRUWV 3 6KDUH 7UDGH %DODQFH 3DNLVWDQ ,QGLD ,UDQ *HUPDQ\ &KLQD (QJODQG 6DXGL$UDELD 86$ &RPPRQ:HDOWKRI,QGHSHQGHQFH6WDWHV &,6 -DSDQ 2WKHU&RXQWULHV 7RWDO 6RXUFH &62DQG'$%VWDIIFDOFXODWLRQV Table 4.4: Direction of External Trade: for the second third of the FY 1394 in (Million USD) &RXQWU\ 1DPH ([SRUWV 3 6KDUHV ,PSRUWV 3 6KDUH 7UDGH %DODQFH 3DNLVWDQ ,QGLD ,UDQ *HUPDQ\ &RPPRQ:HDOWK &KLQD 6DXGL$UDELD -DSDQ (QJODQG 8QLWHG6WDWHV 2WKHU&RXQWULHV 7RWDO 6RXUFH &HQWUDO6WDWLVWLFV2UJDQL]DWLRQDQG'$%VWDIIFDOFXODWLRQV External Sector Developments 61 [DA AFGHANISTAN BANK QUARTERLY ECONOMIC Third Quarter, 1395 AND STATISTICAL BULLETIN] Table 4.5: External Debt: for the third quarter of the FY 1395 (in units indicated) ,Q PLOOLRQ 86' 3HUFHQW RI WRWDO 7RWDOH[WHUQDOGHEW %LODWHUDO 3DULV&OXE 5XVVLDQ)HGHUDWLRQ 8QLWHG6WDWHV *HUPDQ\ 1RQ3DULV&OXE 0XOWLODWHUDO RIZKLFK ,'$ :RUOG%DQN $VLDQ'HYHORSPHQW%DQN ,QWHUQDWLRQDO0RQHWDU\)XQG ,VODPLF'HYHORSPHQW%DQN 23(&)XQG 6RXUFH 'HEW$VVHW0DQDJHPHQW8QLW0LQLVWU\RI)LQDQFH$IJKDQLVWDQ Table 4. 6: Net International Reserves; in the third quarter of the FY 1394 (millions of US dollars) &KDQJHV LQ WKH SUHYLRXV 3 3 3 4 3 )< )< 4 TXDUWHU FKDQJH FKDQJH FKDQJH FKDQJH 1HW,QWHUQDWLRQDO5HVHUYHV PLOOLRQ86' 5HVHUYH$VVHWV 5HVHUYH/LDELOLWLHV &RPPHUFLDOEDQNGHSRVLWVLQIRUHLJQ FXUUHQF\ 1RQUHVLGHQWGHSRVLWVLQIRUHLJQ FXUUHQF\ 8VHRI)XQGUHVRXUFHV *URVV,QWO5HVHUYHV LQPRQWKVRILPSRUW 1HW,QWO5HVHUYHV LQPRQWKVRILPSRUW 6RXUFH 0RQHWDU\3ROLF\'HSDUWPHQW'$% External Sector Developments 62 [DA AFGHANISTAN BANK QUARTERLY Third Quarter, 1395 ECONOMIC AND STATISTICAL BULLETIN] 5 FISCAL DEVELOPMENTS SUHYLRXV \HDU &RPSDULQJ WR WKH HQG RI WKH DXULQJ WKH WKLUG TXDUWHU RI )< WKLUG TXDUWHU )< H[HFXWLRQ UDWH IRU WRWDO SXEOLF VHFWRU SHUIRUPDQFH LQ WHUPV RI EXGJHWLVSUHVHQWLQJDVOLJKWLQFUHDVHRIRQO\ GRPHVWLF UHYHQXH FROOHFWLRQ ZDV TXLWH YLYLG SHUFHQW +RZHYHU $IJKDQLVWDQಬ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ಬ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iscal Sector Developments 66 [DA AFGHANISTAN BANK QUARTERLY ECONOMIC Third Quarter, 1395 AND STATISTICAL BULLETIN] 7KH SRVLWLYH PRPHQWXP JDLQHG LQ WKH WKLUG 5.3.1 Tax Revenue TXDUWHU ZDV PDLQO\ GXH WR WKH UHIRUPV LQ WKH UHYHQXH FROOHFWLRQ V\VWHP WKH LPSOHPHQWDWLRQ $FFRUGLQJWRDYDLODEOHGDWDRYHUDOOWD[UHYHQXH RI QHZ WD[ PHDVXUHV LQFUHDVH LQ WD[HV LQFOXGLQJ FXVWRP GXWLHV LQFUHDVHG IURP $I FRPSRQHQWV VXFK DV WD[DWLRQ RQ WKH PRELOH ELOOLRQWR$I ELOOLRQFRPSDUHGWRWKH FDUGV DQG RWKHU LPSRUWDQW LQVWLWXWLRQDO UHIRUPV VDPHTXDUWHURIWKH)<ZKLFKUHSUHVHQWV LQFXVWRPVDQGUHYHQXHDGPLQLVWUDWLRQ DQLQFUHPHQWRISHUFHQWRU$IELOOLRQ :KLOH WRWDO WD[ FROOHFWLRQ IURP WKH FXVWRP GXWLHVSUHVHQWHGSHUFHQWGHFOLQHSOXPPHWLQJ Figure 5.1: Composition of Total IURPDWRWDORI$IELOOLRQWR$I ELOOLRQLQ Revenue FY 1395 Third Quarter WKHWKLUGTXDUWHURI)< 26% Figure 5.3: Comparison of Tax Revenue 38% 20,000 FY 1395 Q3 FY 1394 Q3 1% 16,000 12,000 8,000 35% 4,000 - 2,687.47 6,927.17 81.47 6,721.72 1,123.76 6,950.11 0.00 2,453.37 5,506.34 176.57 4,599.18 932.96 7,459.20 Total donor contributions Total other revenue 0 Total social contributions Total taxation revenues 6RXUFH 0LQLVWU\RI)LQDQFH03'FDOFXODWLRQ Figure 5.2: Comparison of Total Revenue 6RXUFH 60,000 0LQLVWU\RI)LQDQFH03'FDOFXODWLRQ Q3 FY 2016 Vs. Q3 FY 2015 50,000 Figure 5.4: Composition of Tax Revenue FY 1395 Q3 40,000 11% FY 1394 Q3 28% 30,000 20,000 28% 0% 5% 36,388.06 35,702.21 10,000 33,943.02 24,491.70 21,127.61 6,599.94 1,297.93 1,129.84 28% 0 0% Fixed Taxes Income Taxes Property Taxes Sales Taxes Other Taxes Tax Penalties and Fines 6RXUFH 0LQLVWU\RI)LQDQFH03'FDOFXODWLRQ Customs duties 6RXUFH 0LQLVWU\RI)LQDQFH03'FDOFXODWLRQ Fiscal Sector Developments 67 [DA AFGHANISTAN BANK QUARTERLY ECONOMIC Third Quarter, 1395 AND STATISTICAL BULLETIN] 5.3.2 Non-tax Revenues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igure 5.5: Financing Sources of National 6LPLODUO\ VRFLDO FRQWULEXWLRQ WKDW FRQVWLWXWHV Budget Quarter 3, FY 2016 RQO\ SHUFHQW RI WKH WRWDO GRPHVWLF UHYHQXH SUHVHQWHGDQLQFUHDVHRISHUFHQW7KHWRWDO DPRXQWFROOHFWHGZHUH$IELOOLRQXSIURP$I ELOOLRQLQ)< 38% IV.GRANTS 62% $IJKDQ JRYHUQPHQW UHFHLYHV JUDQWV IURP YDULRXV GRQRUV WUXVWV DQG LQWHUQDWLRQDO FRPPLWWHHVWRILQDQFHYDULHW\RISURMHFWVLQERWK RSHUDWLQJ DQG GHYHORSPHQW H[SHQGLWXUHV Domestic Resources External Assistances ,QWHJUDWHGJUDQWVSUHVHQWHGDVOLJKWLQFUHDVHLQ WKH WKLUG TXDUWHU RI )< FRPSDUHG WR )< 6RXUFH 7RWDO GHYHORSPHQW DQG RSHUDWLQJ JUDQWV LQ WKH 0LQLVWU\RI)LQDQFH03'FDOFXODWLRQ WKLUGTXDUWHURI)<DPRXQWHGWR$I Fiscal Sector Developments 68 [DA AFGHANISTAN BANK QUARTERLY ECONOMIC Third Quarter, 1395 AND STATISTICAL BULLETIN] Figure 5.6: Comparison of Donors +RZHYHU WKH FXUUHQW H[SHQGLWXUH SUHVHQWHG D Contribution VOLJKW GHFUHDVH RI SHUFHQW IURP $I 18,000 FY 1395 Q3 ELOOLRQWR$I ELOOLRQGXULQJWKHWKLUGTXDUWHU FY 1394 Q3 16,000 RI)<GHFOLQHGE\$IELOOLRQ 14,000 2Q WKH FRQWUDU\ GHYHORSPHQW H[SHQGLWXUH 12,000 10,000 HQODUJHG WR $I ELOOLRQ IURP VXP RI $I 8,000 ELOOLRQLQGLFDWLQJDVLJQLILFDQWLQFUHPHQWRI 6,000 16,169.25 14,181.22 SHUFHQW 4,000 8,747.17 )URP WRWDO VSHQGLQJ SHUFHQW ZHUH FXUUHQW 2,000 6,816.57 6,422.88 6,361.30 0.00 43.11 0.00 1,513.70 0.00 2,325.57 0.00 1,504.71 906.42 0.00 0.00 333.95 1,521.72 0.00 3,786.70 0.00 794.07 661.93 0 EXGJHWDQGSHUFHQWGHYHORSPHQWEXGJHW Figure 5.7: Composition of Total Government Expenditure Quarter 3, FY 2016 6RXUFH 0LQLVWU\RI)LQDQFH03'FDOFXODWLRQ 73% V. 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CLASSIFICATION OF LOANS VHFWRUPDNLQJ SHUFHQWRIWKHVHFWRUಬV 13/ ZLWK PDQXIDFWXULQJ VHFWRU DW WKH 6.2.1 Non-performing loans VHFRQGSODFHKDYLQJ SHUFHQWVKDUHRI WKH VHFWRU 13/ WKRXJK WKH 13/ VKRZHG $W WKH HQG RI WKLUG TXDUWHU QRQ GHFUHDVH LQ WKHVH VHFWRUV DQG VHUYLFHV SHUIRUPLQJ ORDQV VWRRG DW $) ELOOLRQ VHFWRU SHUFHQW RI WRWDO JURVV ORDQV DQG Figure 6.3: Quality of Loan Portfolio SHUFHQW RI WKH V\VWHPಬV UHJXODWRU\ FDSLWDO DJDLQVW $) ELOOLRQ RU 100% 90% SHUFHQW RI WKH WRWDO JURVV ORDQV LQ WKH 80% 70% SUHFHGLQJ TXDUWHU 7KH GHFUHDVH LQ QRQ 60% 85.82% 82.89% 86.65% SHUIRUPLQJ ORDQ LV PDLQO\ GXH WR 50% 40% UHSRVVHVVLRQV DQG FKDUJH RIIV 0RUH WKDQ 30% SHUFHQW RI WKH 13/V UHODWHV WR WKUHH 20% 10% 14.18% 17.11% 13.35% 3ULYDWH FRPPHUFLDO EDQNV KROGLQJ 0% SHUFHQW RI WRWDO JURVV ORDQV RI WKH EDQNLQJ Sunbula Jawza Sunbula 1394 1395 1395 VHFWRU Non-Performing Loans Performing Loans )LQDQFLDO 6XSHUYLVLRQ 'HSDUWPHQW )6' LV FORVHO\ZRUNLQJZLWKWKHILQDQFLDOLQVWLWXWLRQV Source: Financial Supervision Department/DAB ZLWK SRRU ORDQ SHUIRUPDQFH WR GHVLJQ DQG LPSOHPHQW SODQV WR LPSURYH WKHLU DVVHW 6.2.2 Adversely-classified loans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anking System Performance 78 [DA AFGHANISTAN BANK QUARTERLY Third Quarter, 1395 ECONOMIC AND STATISTICAL BULLETIN] UHPHGLDODFWLRQVE\PDQDJHPHQWWRUHGXFH FODVVLILHG LQ WKLV FDWHJRU\ DV LW SURPSWV WKHOHYHORI$GYHUVHO\&ODVVLILHGORDQVWRDQ FKDUJHRIIIURPEDODQFHVKHHW DFFHSWDEOHOHYHO,QDGGLWLRQPRUHHPSKDVLV VKRXOGEHSODFHGRQVWUHQJWKHQLQJFRUSRUDWH 6.2.5 Interbank Claims JRYHUQDQFHLQEDQNVZLWKSRRUFUHGLWTXDOLW\ ,QWHUEDQN &ODLPV DUH WKH VHFRQG ODUJHVW HQKDQFLQJ HIIHFWLYHQHVV DQG HIILFLHQF\ RI FDWHJRU\ RI DVVHWV FXUUHQWO\ FRPSULVLQJ $) LQWHUQDO FRQWUROV DQG DGHTXDWHO\ PDQDJLQJ ELOOLRQ SHUFHQW RI WRWDO DVVHWV LQKHUHQWDQGXQV\VWHPDWLFULVN UHJLVWHUHG $) ELOOLRQ SHUFHQW 6.2.3 Loans classified Watch GHFUHDVH GXULQJ WKH WKLUG TXDUWHU RI -XQH7KHGHFOLQHLQLQWHUEDQNFODLPVLV /RDQVFODVVLILHGLQWKHಯZDWFKರ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igure 6.4: Share of Inter bank Claims among banking groups PRQLWRULQJDVLWPD\OHDGWRPRUHDGYHUVHO\ 60.00 FODVVLILHGORDQV 6XEVWDQGDUG'RXEWIXO DQG 46.58 49.69 47.22 ORVVHVLQWKHIXWXUH 50.00 40.00 6.2.4 Loans classified loss3 AF Billions 30.00 19 17 17 20.00 10.93 /RDQV FODVVLILHG ORVV DPRXQWV WR $) 8.70 7.75 10.00 PLOOLRQ RU SHUFHQW RI WRWDO JURVV ORDQV 0.00 DUH XS E\ $) PLOOLRQ VLQFH SUHYLRXV Sunbula Jawza Sunbula 1394 1395 1395 TXDUWHU DWWULEXWHG WR ILYH EDQNV %DQNV DUH UHTXLUHG WR PDLQWDLQ HQRXJK FDSLWDO DW DOO State-owned banks Private banks Branch Banks WLPHV WR FRYHU ORVVHV UHVXOWHG IURP ORDQV Source: Financial Supervision Department/DAB 3 Assets on which the payment of principal or interest is due and remains unpaid for 540 days or more (Loss) as per Accounting Letter No. 03/92 dated 16/09/1392 Banking System Performance 79 [DA AFGHANISTAN BANK QUARTERLY Third Quarter, 1395 ECONOMIC AND STATISTICAL BULLETIN] 6.2.6 Investment the preceding quarter June 2016. All 7KH LQYHVWPHQW SRUWIROLR RI WKH EDQNLQJ components of total liabilities except VHFWRU ZKLFK FRPSULVHV RI ERQGV *RY 6HFXULWLHV LQYHVWPHQW LQ DVVRFLDWHG all other liabilities, suspense accounts FRPSDQLHV JUHZE\ SHUFHQWRU$) and accrued interest payable have ELOOLRQRYHUWKHSUHYLRXVTXDUWHUVWDQGLQJDW shown decreased during the third the $) ELOOLRQ RU SHUFHQW RI WRWDO quarter. DVVHWVWKHLQFUHDVHFDPHIURPIRXUEDQNLQJ LQVWLWXWLRQV 0DMRU SDUW RI WKH VHFWRUಬV The majority of liabilities are made LQYHVWPHQW WRRN SODFH RXWVLGH $IJKDQLVWDQ up of deposits (95.74 percent) 7KH LQYHVWPHQW SRUWIROLR LV DWWULEXWHG WR WZR followed by “other liabilities” VWDWH RZQHG EDQNV ILYH FRPPHUFLDO EDQNV borrowings. See table 6.5 DQGWKUHHEUDQFKHVRIIRUHLJQEDQNV Figure 6.5: Liabilities decreased by AF 58.02 million or 0.02 percent 6.2.7 Cash in Vault and Claims on 100% 9.12% 8.36% 8.05% DAB &DVK LQ YDXOW DQG FODLPV RQ '$% WKH 62.39% 64.38% 65.05% ODUJHVWFDWHJRU\"PDNLQJSHUFHQWRIWKH WRWDODVVHWVVKRZHGDQLQFUHDVHRI$) 28.49% 27.26% 26.90% ELOOLRQ ERWK LQ DEVROXWH DV ZHOO DV LQ 0% Sunbula Jawza Sunbula SHUFHQWDJH RI WRWDO DVVHWV VLQFH SUHYLRXV 1394 1395 1395 TXDUWHUHQGLQJLQ-XQH State-Owned Banks Private Banks Branch Bank 7KH EDQNLQJ VHFWRU LV IXOO\ FRPSOLDQW ZLWK UHTXLUHG UHVHUYHV UHJXODWLRQV DQG LV Source: Financial Supervision Department/DAB GHSOR\LQJVORZO\DQGSUXGHQWO\WKHDWWUDFWHG IXQGVLQWRRWKHUW\SHVRIDVVHWV 6.3.1 Deposits III. LIABILITIES 'HSRVLWV EHLQJ WKH PDLQ IXQGLQJ VRXUFH DPRXQWHG WR $) ELOOLRQ IRU WKH Total liabilities of the banking sector TXDUWHU XQGHU UHYLHZ GHFUHDVHG E\ decreased by AF 58.02 million (0.02 SHUFHQW $) PLOOLRQ FRPSDUHG WR percent), standing at AF 248.13 SHUFHQW LQFUHDVH LQ WKH SUHYLRXV billion against AF 248.18 billion in TXDUWHU7KHGHFUHDVHLQGHSRVLWEDVHRIWKH Banking System Performance 80 [DA AFGHANISTAN BANK QUARTERLY Third Quarter, 1395 ECONOMIC AND STATISTICAL BULLETIN] EDQNLQJ VHFWRU LV DWWULEXWHG WR GHFUHDVH LQ GHSRVLW SRUWIROLR ZHUH XS E\ SHUFHQW VDYLQJ GHSRVLWV LQ 86' FXUUHQF\ &XUUHQF\ VLQFH-XQH ZLVH DQDO\VLV VKRZV WKDW $IJKDQL Figure 6.6: Currency Composition of GHQRPLQDWHG GHSRVLWV LQGLFDWHG Deposits SHUFHQW LQFUHDVH -XQH DFFRXQWLQJ IRU 3.98% 100% 4.93% 5.43% SHUFHQW RI WRWDO GHSRVLWV ZKLOH 86 90% 80% GROODU GHQRPLQDWHG GHSRVLWV ZHUH GRZQ E\ 70% SHUFHQW -XQH PDNLQJ 60% 66.09% 66.18% 65.36% SHUFHQWRIWKHWRWDOGHSRVLWVRIWKHV\VWHP 50% 40% 'HSRVLWV LQ 3ULYDWH %DQNV UHDFKHG 30% $) ELOOLRQ LQGLFDWLQJ DQ LQFUHDVH RI 20% 29.93% 28.89% 29.21% SHUFHQW GXULQJ WKH TXDUWHU XQGHU 10% 0% UHYLHZ PDNLQJ XS SHUFHQW RI WKH Sunbula Jawza Sunbula V\VWHPಬVGHSRVLWV 1394 1395 1395 7KH VKDUH RI VWDWHRZQHG EDQNV LQ WRWDO AF USD All Other GHSRVLWV DPRXQWHG WR $) ELOOLRQ Source: Financial Supervision Department/DAB DFFRXQWLQJ IRU SHUFHQW RI WKH WRWDO Figure 6.7: Afghani Denominated Deposits GHSRVLWV,QWKHWKLUGTXDUWHU GHSRVLWV LQ VWDWHRZQHG EDQNV GHFUHDVHG E\ SHUFHQW-XQH 100% 4.83% 3.72% 5.24% 0HDQZKLOH GHSRVLWV LQ EUDQFKHV RI IRUHLJQ 90% 80% EDQNV VWRRG DW $) ELOOLRQ 70% 51.48% 48.06% 45.76% SHUFHQW RI WRWDO GHSRVLWV RI WKH V\VWHP 60% 50% 'HSRVLWVLQEUDQFKHVRIIRUHLJQFRQWLQXHGWR 40% 30% 48.22% 49.00% GHFUHDVHLQWKHWKLUGTXDUWHUE\SHUFHQW 20% 43.69% GXULQJWKHWKLUGTXDUWHU-XQH 10% 0% ,Q WHUPV RI W\SHV RI GHSRVLWV GHPDQG Sunbula Jawza Sunbula 1394 1395 1395 GHSRVLWVDFFRXQWHGIRUSHUFHQWRIWKH WRWDOGHSRVLWEDVHLQFUHDVHGE\SHUFHQW Private banks State-owned banks Branches 6DYLQJ GHSRVLWV FRQVWLWXWLQJ SHUFHQW RI WRWDO GHSRVLWV ZHUH LQ WKH VHFRQG SODFH Source: Financial Supervision Department/DAB GHSLFWHG SHUFHQW GHFUHDVH ZKLOH WLPH GHSRVLWVPDNLQJXSSHUFHQWRIWKHWRWDO Banking System Performance 81 [DA AFGHANISTAN BANK QUARTERLY Third Quarter, 1395 ECONOMIC AND STATISTICAL BULLETIN] Figure 6.8: Deposits decreased by 0.28 6.3.2 Borrowings percent or AF 674 million 100% 8.50% 8.07% 7.92% 7KH VKDUH RI ERUURZLQJV LQ WRWDO IXQGLQJ 80% VWUXFWXUHRIWKHV\VWHPGHFUHDVHGE\ SHUFHQW VWDQGLQJ DW $) ELOOLRQ DW WKH 60% 62.90% 64.83% 65.56% HQG RI 6HSWHPEHU ,W LV ZRUWK 40% PHQWLRQLQJ WKDW ERUURZLQJV PDNH XS 20% SHUFHQW RI WRWDO OLDELOLWLHV SHUFHQW 28.60% 27.10% 26.52% LQFUHDVHLQWKHSUHFHGLQJTXDUWHU 0% Sunbula Jawza Sunbula 1394 1395 1395 State-Owned-Banks Private Banks IV. LIQUIDITY Branches of foreign banks 6RXUFH )LQDQFLDO6XSHUYLVLRQ'HSDUWPHQW'$% /LTXLGLW\ ULVN FDQ EH GHILQHG DV WKH ULVN RI Figure 6.9: Breakdown of Deposits QRW KDYLQJ VXIILFLHQW OLTXLG DVVHWV WR PHHW WKHGHPDQGRIERUURZHUVDQGGHSRVLWRUV$OO 69% EDQNVDUHUHTXLUHGWRPDLQWDLQDUHDVRQDEOH 6% OHYHOLQRUGHUWRDYRLGDQ\OLTXLGLW\SUREOHP )RU WKLV UHDVRQ EDQNV VKRXOG PDLQWDLQ DQ 25% DVVHW OLDELOLW\ FRPPLWWHH $/&2 RQH RI LWV WDVNV LV WKH OLTXLGLW\ PDQDJHPHQW RI WKH EDQN WKURXJK JDS DQDO\VLV VWUHVV WHVWLQJ Saving deposits Time deposits Demaind deposits VFHQDULR DQDO\VLV FDVK IORZ DQDO\VLV HWF DFFRUGLQJWRSROLFLHVRIWKHEDQN 6RXUFH )LQDQFLDO6XSHUYLVLRQ'HSDUWPHQW'$% 7DEOH .H\ )LQDQFLDO 6RXQGQHVV ,QGLFDWRUV RI WKH EDQNLQJ 6HFWRU 0DU 0DU 0DU 0DU 'HF 'HF 'HF 'HF 6HS 5DWLR LQ 3 7RWDO&DSLWDO$GHTXDF\5DWLR 7LHU&DSLWDO$GHTXDF\5DWLR 1RQ3HUIRUPLQJ/RDQVWR7RWDO *URVV/RDQV 5HWXUQRQ$VVHWV 52$ 5HWXUQRQ(TXLW\ 52( OLTXLGLW\5DWLR %URDG0HDVXUH 0HGLDQ OLTXLGLW\$VVHWVWR7RWDO$VVHWV ([FOXGLQJ.DEXO%DQN 6RXUFH )LQDQFLDO6XSHUYLVLRQ'HSDUWPHQW'$% Banking System Performance 82 [DA AFGHANISTAN BANK QUARTERLY Third Quarter, 1395 ECONOMIC AND STATISTICAL BULLETIN] 6.4.1 Liquidity Ratio (broad VI. 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