The Central Bank of Kuwait affirmed that the country’s banking sector continues to demonstrate strong regulatory indicators, reflecting a solid and resilient financial position despite ongoing global and regional challenges.
In a statement published on its official website, the central bank noted that key financial soundness indicators — particularly liquidity and capital adequacy ratios — remain well above international standards and regulatory requirements.
This, it said, underscores the sector’s robust financial standing and its sustained ability to withstand shocks, meet obligations, and deliver banking services with high efficiency and reliability, reports Al-Rai daily.
The bank attributed this strength to the prudent and precautionary policies it has consistently adopted over recent years. Within the framework of closely monitoring current geopolitical developments, it revealed that it has implemented a comprehensive package of measures aimed at enhancing the flexibility and resilience of the local banking system.
These measures include updated supervisory instructions and macroprudential policy tools, particularly concerning liquidity requirements and capital adequacy ratios.
The objective, according to the central bank, is to support economic activity while maintaining the stability of banking operations.
As part of this package, the central bank announced a reduction in certain liquidity standards applied to banks, including the liquidity coverage ratio, the net stable funding ratio, and the regulatory liquidity ratio.
It also raised the maximum limits for cumulative liquidity gaps and expanded the maximum threshold available for granting financing.
In addition, part of the precautionary capital buffer within the capital base has been released, allowing banks greater room to maneuver in supporting lending and economic growth.
The central bank concluded by reaffirming its commitment to closely monitoring economic indicators and geopolitical developments, stressing its readiness to take further measures as needed to ensure the sustainability and stability of the domestic banking sector.
