KABUL (AFP) - Branches of Afghanistans biggest private bank were crowded Saturday with government employees queuing to be paid and customers wanting to withdraw their money following corruption allegations. Kabul Bank has been the subject of US newspaper reports alleging large-scale corruption by executives, though the government and central bank have said it is solvent and there is no need for customers to panic. Banks were closed on Friday for the weekly holiday, providing respite after a day of mild panic following the reports, which saw the Washington Post say the Kabul Bank had been taken over by the central bank. The governor of Afghanistans central bank, Adbul Qadir Fitrat, said the bank had not been taken over and along with the finance minister reassured depositors their money was safe. US newspapers, including the New York Times and the Wall Street Journal, reported on Wednesday that the central bank had replaced the banks two top executives chief executive Khalilullah Ferozi and chairman Sher Khan Farnud and ordered Farnud to hand over 160 million dollars worth of luxury property purchased in Dubai for himself and for cronies. Fitrat denied the reports, saying the men had resigned voluntarily as new regulations no longer permitted shareholders to hold executive positions. Finance Minister Hazrat Omar Zakhailwal reassured Kabul Bank customers the institution was solvent, saying the administration of President Hamid Karzai gave its full backing and cash was being delivered to branches nationwide. He said 100 million dollars had been deposited in the bank to cover government salaries, which were due to be paid Saturday. Many people crowding into Kabul Bank branches in the capital and the northern commercial city of Mazar-I-Sharif on Saturday wished to withdraw money ahead of the upcoming Eid holiday, when Muslims buy gifts, clothes and special foods to celebrate the end of the fasting month of Ramadan. Mohammad, a 35-year-old doctor, said he came to withdraw 800 dollars from his savings of 2,500 dollars at Kabul Banks main branch in the capital because Eid is approaching and I need the cash. I dont believe the bank will go bankrupt, he said. Gul Mohammad, another customer at the head office, said he wanted to close his account, and planned to withdraw his 5,000 dollars. I heard the government say the problems will be solved but I am still suspicious, he told AFP. The Washington Post said on Friday that the US Treasury Department had despatched a team to Kabul to help deal with the crisis, and said that a brother of the president had called for Washingtons intervention. The US embassy did not answer queries. In Mazar-I-Sharif, Kabul Bank branches were crowded with government employees waiting for their pay, an AFP reporter said. Many also wanted to make withdrawals in case of solvency problems, with one man, Mahommad Shafi, saying he was planning to empty his account of 600,000 dollars. Ive been here three times since Thursday because the bank wont give it to me all at once, he said. The US newspaper reports said a cash crisis at the bank could undermine the stability of Afghanistans financial system, and the effort to quell a nine-year-old Taliban-led insurgency. In a report Saturday, the Washington Post quoted Ferozi as saying he had warned Afghan officials that a change of senior bank personnel could be destabilising. I was saying, 'You have to be very cautious and careful about these changes, it quoted him as saying. This didnt take place, and when I resigned, people started panicking. Finance ministry spokesman Aziz Shams told AFP: A change in the leadership of the bank is a normal thing. The government of Afghanistan has always supported the private sector, including private banks. People are always chasing rumours and speculation, he said, referring to the reports. There is no real problem in this bank. We support the bank and we are not concerned that it will collapse. In the main southern city of Kandahar, branches of Kabul Bank were also crowded with customers hoping to withdraw their savings. I didnt sleep all last night, said 35-year-old Mohammad Nadir. I have 10,000 dollars in the bank, it is everything I have. Ive come to get it out but Im not sure I will be able to because there are so many people here, he said.