Banking
From The Report: Kuwait 2015
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Kuwait’s banking system has improved markedly in the years since the global economic downturn: at the end of 2014, total customer and government deposits held by local banks stood at $129.6bn, up from $125.5bn at the end of 2013. Meanwhile, a series of new rules put in place by the Central Bank of Kuwait and other regulatory bodies in recent years have steadied the sector, providing a stable framework for future expansion. As of September 2014 the capital adequacy ratio in Kuwait’s banking industry was 18.3%, up from 15.6% at the end of 2008 and well above the 12% minimum. Kuwait’s sovereign net foreign assets, meanwhile, were valued at 269% of GDP at the end of the 2014 – the highest of any rated sovereign, according to Fitch – and government debt was at just 5.3% of GDP, an indication of Kuwait’s strong fiscal position.

This chapter contains an interview with Mohammad Y Al Hashel, Governor, Central Bank of Kuwait.

Articles from this Chapter

Overview

Solid fundamentals: One of the country’s most stable industries looks to the future
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After more than half a decade of heavy provisioning and regulatory reforms, Kuwait’s banking sector is now in the early stages of resurgence in credit issuance and various other activities. The industry’s overall stability and performance has improved markedly since the 2007-08 global economic downturn, due in large part to a series of new rules put in place by the Central Bank of Kuwait (CBK) and other regulatory organisations in recent years. Today Kuwait’s 11 domestic and 11 foreign banks…

Analysis

Unlocking potential: The government has introduced new regulations as the market recovery continues
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In March 2014 Kuwait’s central bank announced that foreign banks would be allowed to operate more than one branch at a time in the country. Moreover, over the past few years the Central Bank of Kuwait (CBK) has worked to encourage banks to boost credit issuance to both individuals and businesses. These changes have been lauded as a means of encouraging competition and the development of new banking services and products. “The new rules will have a positive impact on the local market as they…

Interview

Enhancing stability: OBG talks to Mohammad Y Al Hashel, Governor, Central Bank of Kuwait (CBK)
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Interview:Mohammad Y Al Hashel To what extent is the growth of the corporate debt market contingent on greater sovereign issuance? MOHAMMAD Y AL HASHEL: The development of a local corporate debt market is dependent on a number of factors, and is not solely reliant on greater sovereign issuance. In an open economy such as Kuwait, corporate borrowers are able to access a number of markets and instruments as a means of raising funds. It is envisaged that as Kuwait’s Development Plan has more…

Analysis

Safe and sound: Ensuring long-term financial stability is a government priority
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While Kuwait’s banking sector fared well in the wake of the 2007-08 international financial crisis compared to many GCC states, the sector regulators – the Central Bank of Kuwait (CBK) and the Capital Markets Authority (CMA) – have nevertheless worked to shore up the industry to ensure its long-term stability. Since 2008 the government has introduced a raft of ambitious legislation aimed at instituting best practices in risk management and corporate oversight, with the overarching objective…