Banking
From The Report: Kuwait 2014
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The banking sector is considered the backbone of the non-oil economy. The industry has posted steady growth since the global downturn and total assets of local banks were $190.2bn at the end of the first quarter of 2014, up from $181.1bn at the end of 2013 and $158.6bn at the end of 2012. Banking and financial sector legislation that was enacted during 2009 has been helping improve stability in the sector. This chapter contains interviews with Mohammad Al Hashel, Governor, Central Bank of Kuwait; and Fahed Boodai, Executive Chairman, Gatehouse Bank.

Articles from this Chapter

Overview

A strong focus on improving asset quality and ramping up reserves has paid dividends
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Kuwait’s banking sector has consistently posted solid growth in recent years, with this coming on the back of strong economic activity both at home and throughout the Gulf as a whole. The industry, which comprises 11 local banks and 11 foreign banks, is widely considered to be the backbone of the country’s non-oil economy, and is one of the oldest banking sectors in the region. As of the end of March 2014, local banks had total assets of KD54.1bn ($190.2bn), according to data from the Central…

Interview

OBG talks to Mohammad Al Hashel, Governor, Central Bank of Kuwait (CBK)
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Interview:Mohammad Al Hashel How is the CBK monitoring and improving corporate governance in line with global practices? MOHAMMAD AL HASHEL: The CBK has taken strenuous efforts to improve corporate governance in Kuwait’s banks. Specifically, in June 2012, the central bank thoroughly revised its existing corporate governance instructions to local banks, taking into account international best practice. We view these new measures, which were implemented in July 2013, as being very significant…

Interview

OBG talks to Fahed Boodai, Executive Chairman, Gatehouse Bank
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Interview:Fahed Boodai In what ways has the asset management industry grown over the last few years, and what new opportunities are being made available? FAHED BOODAI: The asset management industry is being fuelled by the needs of institutional investors who are increasingly looking for new and unique solutions that demonstrate diversification, while at the same time optimising yields and returns. The hold period of pension funds, insurance companies and sovereign wealth funds is longer than…

Analysis

Lending picks up on the back of encouraging economic signs
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Credit issuance at Kuwait’s banks rose by 5% in 2012 and by 5.7% in the first six months of 2013, as per data from the KIPCO Asset Management Company (KAMCO). These figures – which represent the highest annual lending since 2009 – can be attributed to the steadily improving financial situation at many of the country’s banks and a rapidly rising appetite for credit among consumers and, to a slightly lesser extent, businesses. The 2012 jump is also the result of years of provisioning – and…

Analysis

A recent drive to diversify bodes well for future stability
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For the past five years diversification has been a key point of focus within Kuwait’s banking sector. By seeking to generate earnings from a growing number of sources, the country’s banks and other financial players aim to mitigate future risks and ensure long-term stability and profits. Traditionally, domestic commercial banking activities have accounted for most revenue at local banks. As of year-end 2012 this was still the case, according to data from local ratings agency Capital Standards,…