Cayman Financial Review

The Kabulbank scandal: Part III

The Kabulbank scam may be the largest theft of depositor money per capita the world has ever experienced. Kabulbank was Afghanistan’s largest bank when the central bank intervened on September 2010. It was put into receivership on April 20, 2011. New Kabul Bank (NKB) was established the same day by transferring old Kabulbank’s remaining deposit liabilities covered by an equivalent amount of claims on the central bank, Da Afghanistan Bank (DAB). Kabulbank’s deposits had dropped from $1.3 billion eight months earlier to under $0.6 billion by the time of its good bank/bad bank split.

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