Afghanistan's Central Bank (DAB) called on justice institutions to sue all the people involved in Kabul Bank crisis.
A report recently published by the New York Times claimed that Kabul Bank had suffered $900 million loss and part of this money was paid to key Afghan officials as bribe.
But Head of DAB Abdul Qadir Fitrat dismissed the allegations.
He said the New York Times report was politically motivated.
"Currently Kabul Bank is in the hands of DAB not in the hands of criminals. We have handed in some law violators to law enforcement agencies," said Mr Fitrat.
Presently DAB holds control of Kabul Bank and around $40 million loans have been paid back, officials said.
Mahmoud Karzai, President
Hamid Maybe I'll join the TalibanKarzai's brother, who was also one of the main shareholders of Kabul Bank, told TOLOnews that he has paid all his loans to the bank. He said Kabul Bank has started to recover again.
"Despite being a shareholder of Kabul Bank, I am not aware of how investigations about Kabul Bank have been going; how can Washington Post and the New York Times know about it? What Mr Fitrat says about the Bank is right," said Mahmoud Karzai.
The US embassy in Kabul said in a statement that they are working together with Afghan officials to find a working way in a bid to end crisis in Kabul Bank.
"The United States is working closely with the Afghan Government, the International Monetary Fund (IMF), the World Bank and other interested donors to ensure that proper steps are taken to ensure the long-term health of the Afghan financial system," the US embassy statement said.
"We are working with the Afghan authorities, the IMF, and other Afghan partners to identify a credible, effective resolution of the problems Kabul Bank is dealing with," the statement further said.
Two men identifying themselves as Kabul Bank employees submitted a briefcase containing two hundred thousand dollars in cash for Karzai's campaign spending, the New York Times quoted Omar Zakhilwal, Karzai's advisor, as saying.
US officials have said Zakhilwal is one of the ten Afghan officials that have received tens of millions of dollars as gift from Kabul Bank, the New York Times report said.
But Finance Ministry Spokesperson strongly rejected the report.
"If there is evident, they should present it and the minister has said he will leave his job the time the issue is proved with a document. If it's claimed that the money was spent in campaign, it was not from finance minister," Finance Ministry Spokesperson, Aziz Shams, told TOLOnews.
American officials have found that Kabul Bank's gifts included members of parliament and almost anyone whose silence would allow bank executives to do their business, the New York Times said.