An independent Afghan financial commission has been asked to recommend whether to dissolve Kabul Bank, the nation's largest financial institution that nearly collapsed last year after allegations of mismanagement, cronyism and questionable lending, an Afghan official said Sunday.
The bank currently is controlled by the central bank, which has transferred several hundred million dollars to shore up the institution after a run on it last year by nervous depositors. Last month, the International Monetary Fund recommended that Kabul Bank be placed into receivership and then quickly sold off as part of a broader effort to stabilise the country's shaky financial system. US Treasury Department officials agreed with the decision.
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