Banking
From The Report: Kuwait 2016
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With a raft of large-scale, government-led development projects on the docket, rising retail deposits and strong support from regulators and other authorities, Kuwait’s banking sector is widely considered to be poised for a period of long-term growth. This follows a difficult period linked to the broader economic volatility that has impacted the Gulf region in recent years. Nonetheless, as of the first quarter of 2016 the nation’s 11 domestic lenders had KD59.8bn ($197.8bn) in total assets, up considerably from KD56.7bn ($187.5bn) at the end of the same period in 2015. Relatively plentiful liquidity has contributed to rising levels of credit issuance in 2015 and 2016, with data showing industry-wide credit growth in excess of 8% over the course of 2015.

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

Articles from this Chapter

Overview

Taking stock: Navigating short-term risks to realise longer-term gains
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With a raft of large-scale, government-led development projects on the docket, rising retail deposits and strong support from regulators and other authorities, Kuwait’s banking sector is widely considered to be poised for a period of long-term growth. This follows a difficult period linked to the broader economic volatility that has impacted the Gulf region in recent years. Nonetheless, according to the Central Bank of Kuwait (CBK), as of the end of the first quarter of 2016 the nation’s 11 domestic…

Interview

Strong financial buffers: OBG talks to Mohammad Y Al Hashel, Governor, Central Bank of Kuwait (CBK)
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Interview: Mohammad Y Al Hashel How do you view the resilience of Kuwait’s banking sector in the current economic environment? MOHAMMAD Y AL HASHEL: It is a key mandate of the CBK to ensure a sound and stable financial system, and we have ensured this stability over the years, even at times when financial systems in many countries experienced serious meltdown. Our banking system remains well capitalised, with a capital adequacy ratio of 16.5% as of September 2015. Moreover, around 92% of the…

Analysis

Developing resilience: Recent improvements to the regulatory framework aim to strengthen the sector
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Over the course of the past decade the Central Bank of Kuwait (CBK), the Ministry of Finance and the Capital Markets Authority have focused on strengthening Kuwait’s financial sector. The nation’s banks have been key beneficiaries of this effort. At the end of 2015 Kuwait was home to 23 banks in total, including 11 domestic players and 12 foreign institutions. With a total share of more than 95% of banking sector assets, domestic lenders dominate the market, and it is these institutions that…