Banking
From The Report: Kuwait 2019
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Performance has rebounded in the Kuwaiti banking and financial sectors after a number of years repairing the damage caused by the 2007-08 global financial crisis. Banks’ balance sheets show that net profits, assets, loans and deposits are all growing strongly, and financial metrics look robust, while various industry assessments show that it is well capitalised. This chapter contains a roundtable with Adel Abdul Wahab Al Majed, Chairman, Kuwait Banking Association; and Vice-Chairman and CEO, Boubyan Bank; Michel Accad, Group CEO, Al Ahli Bank of Kuwait; and Elham Y Mahfouz, CEO, Commercial Bank of Kuwait; and an interview with Mohammad Y Al Hashel, Governor, Central Bank of Kuwait.

Articles from this Chapter

Overview

Strong fundamentals: Prudent regulation and years of provisioning result in solid metrics and promising financial performance
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The performance of the banking sector has rebounded since the 2007-08 global financial crisis. Banks’ balance sheets show that net profit, assets, loans and deposits are all growing strongly, financial metrics look robust, and various industry assessments show that the industry is well capitalised. “It has been several years of effort and costs for banks following the implementation of Basel III,” Waleed Al Awadhi, executive director of supervision at the Central Bank of Kuwait (CBK),…

Analysis

Let’s get digital: Financial technology is changing the local banking landscape
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While the digital revolution has swept through many industries, the Kuwaiti banking and finance sectors remain largely unchanged. However, there is a definite sense that digital innovations are gaining ground as banks establish financial technology (fintech) departments in order to guide policy. Technology has the potential to reform the face of banking, and the way in which changes are implemented in the short term will be key. Mobile and online banking, e-payments and new regulations will…

Overview

Strategic lending: Adel Abdul Wahab Al Majed, Chairman, Kuwait Banking Association; and Vice-Chairman and CEO, Boubyan Bank; Michel Accad, Group CEO, Al Ahli Bank of Kuwait; and Elham Y Mahfouz, CEO, Commercial Bank of Kuwait
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Interview:Adel Abdul Wahab Al Majed; Michel Accad; Elham Y Mahfouz In what ways do you expect lending to grow, and what impact will regional developments have? ELHAM Y MAHFOUZ: The upgrade of Boursa Kuwait has generated large money inflows and we have also seen local banks going out for borrowing by issuing bonds, all of which have been well received by the market. Kuwait is a politically neutral country with strong financial buffers through the sovereign wealth fund, which provides a high…

Interview

Above and beyond: Mohammad Y Al Hashel, Governor, Central Bank of Kuwait, on improving prudential regulations and boosting credit
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Interview:Mohammad Y Al Hashel What challenges does the sector face as it works to implement Basel III requirements and International Financial Reporting Standards (IFRS) 9? MOHAMMAD Y AL HASHEL: The Central Bank of Kuwait (CBK) has already implemented the key elements of the Basel III reforms and our banking system is well above each benchmark set under the framework. For example, the capital-adequacy ratio (CAR) of the industry stood at 18% in June 2019, well above the Basel III requirement. Furthermore,…