1. To convene each session of the General Assembly of the shareholders and adopt the agenda for each session.

2. To approve the bank's organizational structure.

3. To make decisions regarding the establishment and dissolving of subsidiaries, branch offices and representative offices of the bank.

4. To appoint and dismiss members of the bank’s Board of Management and to agree their remuneration as members of the Board of Management

5. To oversee and make recommendations on the performance of the bank's Board of Management

6. To consider, make recommendations on revisions to, and approve the bank's business strategy and annual budget

7. To consider, make recommendations on revisions to, and approve policies for the conduct of operational performance, including the bank's risk management policy

8. To consider and make recommendations on potential or actual conflicts of interest

9. To issue guidance to the Board of Management for the successful implementation of agreed policies

10. To determine the conditions under which credit may be granted by bank employees, including where the granting of credit requires the prior approval of the Board of Supervisors

11. To ensure that the bank’s processes, systems and operations respond adequately to Da Afghanistan Bank’s and related legislation and regulations

12. To ensure the adequacy of internal controls and risk management systems for the bank

13. To ensure the integrity of the bank's financial reporting, including financial reporting to Da Afghanistan Bank

14. To ensure that appropriate Internal Audit functions, systems and processes are established

15. To receive and consider reports from the Internal Audit Department at meetings of the Board of Supervisors

16. To make recommendations to the General Assembly on matters requiring shareholders’ approval

17. To make recommendations to the General Assembly concerning the appointment of the external auditors for the bank

18. To ensure the timely execution of the bank's annual external audit

19. To follow up with the Board of Management and banking officers on any managerial letters or qualifications identified in the annual external audit process

20. To take decisions concerning capital distributions, subject to the legislative and regulatory requirements of Da Afghanistan Bank, and what amount of any net profit of the bank shall be transferred to bank reserve

21. To take decisions in accordance with the requirements of current Da Afghanistan Bank’s current legislation and regulations regarding the distribution of capital or any net profit

22. To proactively and pre-emptively advise Da Afghanistan Bank in writing, or require the Board of Management to do so, of any deterioration in the financial situation of the bank, of any identified risk of such deterioration, and any other facts that may materially affect the financial situation of the bank, and in particular if the bank becomes undercapitalized

23. To ensure implementations of directives and instructions issued by Da Afghanistan Bank

24. To take decisions on any other matters placed in the competence of the Board of Supervisors by the bank's charter or by-laws

Meetings of the Board of Supervisors

The Board of Supervisors shall meet regularly, at least once a month.

Special meetings may be held as necessary. A special meeting shall be called if:

1.A special meeting is requested by the Internal Audit Committee or external auditor of the bank

2.It is instructed to do so by Da Afghanistan Bank.

Da Afghanistan Bank may require a bank to hold a special meeting of its Board of Supervisors if it deems it necessary, and to consider the matters set forth in a written notice of Da Afghanistan Bank.