CBK: Organization

Supervision Sector

Decision of the Board of Directors of the Central Bank of Kuwait on the Executive Procedures Applicable to the Provisions of Item (2) under Article (57) of Law No. (32) of Year 1968, Amended by Law No. (28) of Year 2004

Item (2) under Article (57) of Law No. (32) of Year 1968, concerning Currency, the Central Bank of Kuwait and the Organization of Banking Business, amended by Law No. (28) of Year 2004, stipulates the following: “ Unless by prior authorization of the Central Bank, the direct or indirect ownership by any single natural person or legal entity in a Kuwaiti bank shall not exceed five percent of the bank’s capital. Governmental bodies and bodies with independent or attached budgets are exempted from these provisions. Where single ownership exceeds the above percentage for any reason whatsoever, the concerned natural person or legal entity shall dispose of the excess within the period defined by the Central Bank. Violation of this provision results in the shareholder not availing of the excess equity in regard to voting rights in the bank’s General Assembly and directing the bank. The Board of Directors of the Central Bank shall lay down the bases and rules defining the concept of indirect ownership. The provisions of this Article do not apply to cases existing before the application of this Law ”.

Accordingly, the Board of Directors of the Central Bank of Kuwait (CBK), in its meeting on 4/4/2004, decided the following:

First: Principles and rules defining the concept of indirect ownership, according to the provisions of item (2) under Article (57) of Law No. (32) of Year 1968, and amendments thereof:

Within the application of the provisions of Article (57) of Law No. (32) of Year 1968, and amendments thereof, the concept of indirect ownership is defined as “ownership by parties economically or legally connected to the investor, be the latter a natural or juristic person, and whether such connection derives from joint ownership, joint management or related interests”.

Joint ownership and joint management signify any economic or legal connection through joint ownership and joint management. The following are considered cases of joint ownership and joint management.

1. Shares held by the investor in one bank, in his personal capacity or in the capacity of natural guardian of his underage children.

2. Shares held by individual proprietorships which are owned by the investor, or shares held by companies in which the investor is a joint partner.

3. Financial companies in which the investor holds more than 50% of the capital and over which it has control, according to International Accountancy Standards.

4. Any party with economic or legal connections to the investor that allow the latter the exercise of control, according to International Accountancy Standards.

‘Related interests’ signifies interests that allow one party to exercise control or significant influence over another in making financial or operating decisions, or an alliance of a group of parties. The following are considered related interests:

1. Relationship between board members of the company seeking equity acquisition in the bank, and the company’s principal owners and shareholders (that is, those holding more than 5% of the investing company’s capital).

2. Holders of managerial positions in the company seeking equity acquisition in the bank (that is, the company’s chief executive officer and deputies and assistants thereof, the company’s executive directors and those in equivalent positions).

3. Subsidiary companies: companies in which the company seeking equity acquisition in the bank holds more than 50% of the capital, or over which it has control.

4. Sister companies: companies in which the company seeking equity acquisition in the bank holds 20% of the capital, or over which it exercises significant influence.

5. Existence of a declared or undeclared alliance between two parties or a group of parties.

Second: Requirements to be met by the party seeking equity acquisition, for obtaining CBK authorization to hold more than 5% of a Kuwaiti bank’s capital, according to the amended text of Article (57) of Law No. (32) of Year 1968:

Any single person, natural or juristic, Kuwaiti or non-Kuwaiti (other than governmental bodies and bodies with independent or attached budgets) seeking to hold an equity share of more than 5% in any Kuwaiti bank, shall submit to CBK, 60 days ahead of the date of the share acquisition process (calculated from the date of fulfilling all required data and information), an application presenting all data of relevance to the equity acquisition process, and the equity share sought to be held in the bank, along with the following attachments:

1- Statement of personal history and data concerning the party seeking equity acquisition in the bank (name, address, nationality, activity, legal form, educational qualifications and practical experience of the natural person, etc.) and information on other personal aspects, according to a form established for that purpose.

2- Statement of names of all other parties that are shareholders of the bank in which equity acquisition is sought, and that are connected to the party seeking acquisition, whether such connection is through ownership, joint management or related interests (according to the principles and rules approved by CBK Board of Directors regarding the definition of the ownership concept). The statement shall also highlight all details concerning the equity held by the above mentioned parties in the bank, such as the number of shares, the ratio of their value to the bank’s capital, and dates and means of their acquisition (establishment stage, public subscription, purchase from secondary market, debt recovery, inheritance, will, etc.), along with full details on connected parties (name, address, nationality, activity, etc.).

The statement shall also disclose all alliances between the party seeking equity acquisition and any other party, be that alliance declared or undeclared. Where such alliance does not exist, the party seeking equity acquisition in the bank shall submit a statement to that effect, including a commitment to inform CBK of any alliances it may form with any other party in the future.

3- Judicial persons shall submit audited financial statements regarding their financial position, based on the last three years financial statements endorsed by the regulatory authority (if available).

4- Detailed study clarifying the purpose of equity acquisition, and providing information on planned structural changes (financial and administrative) in the bank where equity acquisition is sought, and the justifications for such changes.

5- Any other information requested by CBK upon reviewing each case individually.

Third: Period during which the excess single ownership of a Kuwaiti bank’s capital above the defined maximum limit (5%) shall be disposed of:

1. In cases were exceeding the single ownership limit was unintentional, due to unobtainable CBK’s prior permission, such as in cases were such excess ownership resulted from debt recovery, or was through a will or by inheritance, any excess single ownership (whether direct or indirect) of a Kuwaiti bank’s capital in breach of item (2) under Article (57) of Law No. (32) of Year 1968 and amendments thereof, shall be disposed of within two years as of the date of acquisition. The owner may, during that period, apply for CBK’s permission –according to the established rules- to exceed the 5% ownership limit of the bank capital. It is noted that disposal of excess ownership during the set time limit shall be abided by, in case CBK’s permission is not granted.

2. For other cases of excess single ownership, such as those resulting from purchase or merger operations, etc, the excess single ownership (whether direct or indirect) of a Kuwaiti bank’s capital must be disposed of within a year of the date of acquisition.

In all cases of excess ownership (intentional or unintentional), the concerned shareholder shall not avail of the excess equity in regard to voting rights in the bank’s General Assembly and directing the bank, during the allowed time limit for disposal of excess ownership.

Application Form for Approval of Ownership Exceeding 5% of Bank Capital

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Supervision Sector

Organizational Structure & Responsibilities

Information Systems Coordination and Supervision Unit:

The mentioned unit shall have the following duties and responsibilities:

Carrying out inspections on the information systems at the banking and financial institutions subject to CBK supervision and on the technologies applied in the provision of banking services, along with providing comments on the soundness of financial transactions, in coordination with the Data Processing Department, if need be.
Executing the approved programs for information systems development, as well as all activities related to the usage by Supervision Sector staff of computer hardware, systems and programs, along with remedying all problems confronting the system, in coordination with the concerned sections in the Supervision Sector on the one hands and the Data Processing Department and Banking Information Technology Unit on the other.
Ascertaining the compliance of the banking and financial institutions subject to CBK supervision with the CBK decisions regarding information technology systems.
Determining the requirements and preparing the budget for computer hardware, systems and programs needed by the Supervision Sector, in coordination with the Data Processing Department.
Executing and following up the emergency plan for personal computers and information network at the Supervision Sector, so as to allow their recovery in the event of contingency situations, in coordination with the Data Processing Department.
Contributing to the preparation of studies and recommendations with regard to the interconnection of networks of automated teller machines in the Gulf Cooperation Countries, and any other similar works, along with participating in the specialized meetings and conferences within that area, in coordination with the Data Processing Department.
Participating in the preparation of training plans for the Supervision Sector staff members, regarding computer usage.
Any other tasks assigned to that unit

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Supervision Sector

Organizational Structure & Responsibilities

Third Sector

A- The Banking and Financial Statistics Section:

This section assumes the following responsibilities:

To receive periodic statistical data from the units subject to the supervision of the Central Bank, and review them to ensure that they are prepared correctly and in accordance with relevant rules and regulations in effect.
To prepare consolidated statistical data on the level of each unit of the banking and financial institutions and provide all related sections of the department, and other departments in the Central Bank, where relevant, with these data.
To deal with any other matters assigned to the section.

B- The Credit Section:

This section assumes the following responsibilities:

To receive credit data from the banking and financial institutions that are subject to the Center-of-Risk System, and to verify that they are prepared according to specified rules in this regard.
To provide information on credit clients to banking and financial system units, and to other sections of the Supervision Department, upon their requests, and in accordance with the System of Center-of-Risk requirements.
To prepare consolidated statistics and data for Center-of-Bank Risk on the level of banking and financial institutions’ units.
To receive bank applications concerning discount and rediscount of commercial papers at the Central Bank, assess their compliance with relevant by-laws and decisions and coordinate with other concerned departments of the Bank in this regard.
To deal with any other matters assigned to the section.

C- The Difficult Debts Follow Up Section:

This section assumes the following responsibilities:

To receive data and information regarding both the purchased debts and the real-estate portfolio, and to follow up Managing Banks in this regard.
To prepare the data and statistics necessary to follow up the payment of the purchased debts (immediate cash payment or scheduling), and prepare periodic reports thereon on a monthly basis, whether for each individual Manager Bank and for all banks altogether.
To follow up the bank’s collection of repayments by the clients, enumerate funds transferred from banks to the Central Bank, conduct necessary settlement in this concern to cross check balances from Central Bank books (kept by the Banking Operations Department) with the statements and data submitted by the banks, and to amend any differences.
To submit specific proposals concerning the redemption of bonds issued against either the purchased debts or the real-estate portfolio and take the necessary action in this regard in coordination with the other concerned departments of the Bank.
To submit proposals concerning the level of return on bonds issued against the purchased debts and the real-estate portfolio, and to review and enumerate amounts due and transferred to banks and to the Kuwait Finance House as a return on these bonds in accordance with the determined rate of return.
To follow up with the Kuwait Finance House in respect of actions taken regarding any component of the purchased real-estate portfolio, and to reduce the value of bonds issued against the real-estate portfolio, in accordance with the Executive Regulations of the Law No. (41) of the year 1993.
To receive the quarterly report from the Kuwait Finance House concerning developments in the purchased real-estate portfolio and the outcome of its management thereof, and to make necessary arrangements for the re-purchase of the real-estate portfolio back by the Kuwait Finance House after its management thereof ends, in conformity with stipulations of the Executive Regulations of the Law No. (41) of the year 1993.
To prepare the Annual Report to be submitted to the Government regarding the purchased debts position in accordance with stipulations of the Article (36) of the Law No. (41) of the year 1993.
To coordinate with other concerned departments at the Central Bank in respect to all matters related to the purchased debts and the real-estate portfolio.
To coordinate with the on-site supervision section (inspection) regarding inspection operations undertaken on Managing Banks in the area of follow up of purchased debts position, and to verify data submitted to the Central Bank in this regard.
To undertake any other duties as may be assigned to the Central Bank in accordance with stipulations of the Law No. (41) of the year 1993 and its Executive Regulations.
To deal with any other matters assigned to the section.

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Supervision Sector

Organizational Structure & Responsibilities

Off-Site Supervision Department:

The Off-site Supervision Department follows up the off-site supervisory work conducted on the banking and financial units activities, to ascertain the soundness and stability of the position of the banking and financial system units and that sector as a whole. It also receives the periodic financial data of units subject to the Central Bank supervision, follows up the necessary works for the issuance of supervisory systems, instructions and regulations to the banking and financial units, studies the banking and financial phenomena that become manifest while monitoring their reflections on the soundness and stability of the banking and financial system units, follows up the execution of the banking risks system and the rules pertaining to its application, along with following up matters of relevance to the application of the Law 41/93 and related laws. Additionally, the department is in charge of contacting external auditors of units subject to the Central Bank supervision if need be.

The department encompasses the following sections and units:

A- Policies and Technical Studies Section:

This section assumes the following responsibilities:

To prepare studies on the development of supervisory policies and procedures, in accordance with international developments in this field, and to study any possible reflections of these policies and procedures on the domestic banking and financial conditions, in coordination with the Off-site Surveillance Section and other sections of the Supervision Sector.
To study and prepare the Central Bank recommendations on issues concerning banking and supervisory conditions, which are proposed on the agenda of committees and meetings attended by representatives of the Central Bank.
To open channels of communications with worldwide supervisory bodies and concerned international institutions, for keeping informed of the latest worldwide trends and developments in the area of supervision on banking and financial activities, and to prepare studies and present suggestions in this regard.
To carry out any other tasks assigned to the section

B- Off-Site Surveillance Section:

This section assumes the following responsibilities:

To study and analyze the financial data of each of the banking system units so as to ensure the soundness of their financial positions, to monitor phenomena or trends whose emergence may call for issuing relevant recommendations, to prepare periodic reports on the trends in the financial position and result of activities of each unit, to follow up the extent of each unit's compliance with the provisions of the Law N0 32 of the year 1968 concerning Currency, the Central Bank of Kuwait and the Organization of Banking Business, and amendments thereto, in addition to all supervisory regulations and instructions issued by the Central Bank, along with suggesting adequate penalties to be applied in case of violations.
To prepare periodic reports on the development of the aggregate financial position of banks, investment companies and money exchange companies, and to conclude the trends and indicators of these developments and propose remedies and means that limit any negative reflections thereof.
To study and analyze data submitted by banks on their average cost of funds and prepare a periodic report on all-banks weighted average cost of funds, and prepare suggestions with regard to the rates of return on Debt Purchase Bonds and the Real Estate Purchase Bonds Portfolio.
To study the closing financial statements of units subject to the Central Bank supervision and prepare the relevant reports needed for the approval of these statements.
To study the estimated balance sheet submitted by banks and compare estimates with actual performance, so as to determine discrepancies between them and the causes thereof.
To receive the external auditors annual reports on the systems and procedures of internal control followed in each bank and other financial institutions (mutual funds, investment companies, and money exchange companies), and verify the soundness of their statistical reports. Also, to receive any other reports requested by the Central Bank, study them in participation with other concerned sections, discuss them with the external auditor and prepare reports on any comments or recommendations in this regard.
To collect and analyze observations and indicators which foretell general banking phenomena, to study their effect and suggest the supervisory regulations that may remedy any negative reflections thereof, so as to achieve the stability and credibility of the financial and banking system, in cooperation with the policies and technical studies section and the other sections in the Supervision Sector. This task encompasses the following: a) To make necessary arrangements for issuing systems and instructions to the banking and financial units. b) To receive queries from units subject to the Central Bank supervision with regard to applied supervisory systems and procedures, prepare replies thereto, or set meetings in this regard with those in charge of these units if need be. c) Preparing and maintaining instruction manuals concerning supervision on banks investment companies, and money exchange companies.
To present suggestions with regard to the extinguishment of Debt Purchase Bonds and the Real Estate Purchase Bonds Portfolio, and take necessary measures with regard to reviewing and calculating the amounts representing the return accrued to selling bodies according to the determined rate of return on bonds. Also to take necessary measures for the extinguishment of these bonds, and carry out any other tasks assigned to the Central Bank according to the provisions of the Law 41 for the year 1993, and its executive by-laws.
To carryout any other tasks assigned to the section.

C- The Banking and Financial Statistics Section:

This section assumes the following responsibilities:

To receive periodic credit data from units subject to the Central Bank supervision, to review these data so as to ensure the correctness of their preparation and their conformity with the regulations applied in this regard, and to statistically analyze the financial indicators of the banking and financial units based on periodic data and statistics.
To prepare aggregate statistics at the banking and financial units levels, and provide them to concerned sections in the department and to other concerned departments in the Central Bank.
To prepare all statistical data required for the various studies carried out by the Supervision Sector.
To endeavor to develop the means and methods of data transfer from units subject to the Central Bank supervision, so as to enhance the efficiency, accuracy, and security of these data and statistics, in cooperation with the concerned bodies at the Central Bank.
To participate with the Off-site Surveillance Section and other sections, in the preparation and development of forms and statistical data presented by the banking and financial units within the context of supervisory regulations and procedures.
To carryout any other tasks assigned to the section.

D- Credit Section:

This section assumes the following responsibilities:

To receive credit data from the banking and financial institutions subject to the Centralized Risk System, and to review these data to verify their conformity with the rules specified in this regard.
To provide information on request from the banking and financial system units and other sections in the supervision sector, at their request, regarding queries on credit clients, according to the requirements of the Centralized Risk System.
To prepare aggregate data and statistics for centralized bank-credit risk on the banking and financial units level, and periodically prepare related reports.
To follow up the execution of the centralized survey system for clients whose cheques were returned by the banking system, as well as for the system of consumer-loan clients against which legal procedures were taken, and periodically prepare related reports.
To receive bank applications presented to the Central Bank, for the discounting and rediscounting of commercial papers of commercial papers, to assess the conformity of these applications with the relevant by-laws and decisions, and to coordinate in this regard with other concerned departments in the Central Bank.
To receive and prepare the statistics concerning the Debt Purchase Bonds and Real Estate Purchase Bonds Portfolio, to follow up the banks managing this portfolio, and to present required information in this regard to other sections in the Supervision Sector.
To carryout any other tasks assigned to the section.

E- Secretarial and Typing Unit:

Carries out secretarial and typing work for the Off-site Supervision Department.

F- Automated Filing and Document Unit:

Carries out all automated and manual filing of documents concerning the Supervision Sector.

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Supervision Department

Organizational Structure & Responsibilities

On-Site Supervision Department

The On-Site Supervision Department assumes the follow up of on-site supervision over the activities of banking and financial institutions (banks, investment companies, money exchange companies, and mutual funds), to ascertain their abidance by the provisions of relevant laws and supervisory policies and regulations, along with studying applications for the foundation of new banking and financial institutions, the establishment of new mutual funds, and the opening of branches for existing units. Additionally, the Department is concerned with following up the combating of money-laundering and suspect operations, and proposing the necessary policies, regulations and instructions in that area. The On-Site Supervision Department encompasses the following sections and units:

A- The Inspection Section:

This section assumes the following responsibilities:

To conduct regular comprehensive inspections of the banking and financial institutions (banks, investment companies, money exchange companies, and mutual funds), in order to ascertain the soundness of their financial positions as well as the extent of their adherence to the provisions of their articles of association and relevant laws, resolutions and instructions. Also, to assess the adequacy of internal control systems in these institutions and verify the soundness of statistical data they submit to the Central Bank, and to evaluate their management performance.
To prepare and execute inspection plans within a time schedule for the comprehensive inspection of banking and financial institutions, along with preparing reports on inspections results.
To follow up the rectification of remarks and violations revealed by inspections, while observing full coordination with the Off-site Surveillance Section in this regard.
To conduct inspection missions with specific objectives, whether to get acquainted with certain problems or phenomena, or to verify remedial measures being taken, or for any other reasons necessitating the carrying out of on-site inspection.
To participate with the Off-site Surveillance Section, in coordination with other sections in the Supervision Sector, in the preparation of studies on the general banking phenomena revealed by inspections, to monitor the effect of these phenomena on the objectives and policies of the Central Bank and on banking performance, and to suggest the means for remedying or curbing them.
To seek to develop the methods for inspection of banking and financial institutions, in line with relevant worldwide developments.
To carryout any other tasks assigned to the section.

B- Banks and Financial Units Affairs Section:

This section assumes the following responsibilities:

To prepare studies aimed at determining the market need for new banking and financial units or for new branches of existing units, along with presenting suggestions and recommendations in this regard.
To study the applications for the establishment of new banking and financial institutions, new mutual funds, and new branches of existing units, according to the rules laid down in this regard. Also, to study applications for the modification of articles of associations and by-laws of the banking and financial institutions subject to the Central Bank supervision.
To prepare studies related to applications for merger of units subject to the Central Bank supervision, and to make recommendations in this regard.
To study the applications submitted by banks regarding banking services and financial activities carried out by banks, along with the applications for the issuance of bonds by units subject to the Central Bank supervision.
To participate with other sections in the Supervision Sector in the preparation of Central Bank recommendations about suggestions presented with regard to banking, financial and commercial legislations and laws and amendments thereto. Also, to propose in coordination with the legal office, the introduction of amendments to applied legislations and laws, in keeping up with the changes and developments in economic and financial conditions on both the domestic and worldwide scenes.
To study complaints submitted to the Central bank by those dealing with units subject to its supervision.
To participate with the Off-site Surveillance Section and other sections of the Supervision Sector, in preparing studies on emerging banking phenomena, and monitoring their effect on the safety and soundness of the banking units and the sector as a whole.
To organize and maintain registers of banks, investment companies, money exchange companies and mutual funds, and follow up the procedures for entry and modification of data in these records.
To carryout any other tasks assigned to the section.

C- Anti Money Laundering Section:

This section assumes the following responsibilities:

To propose the policies, regulations and instructions issued by the Central Bank with regard to combating money-laundering operations, financing terrorism, counterfeiting, financial and banking fraud, and issues related to security matters in units subject to the Central Bank supervision.
To follow up all correspondence received by the Central Bank on the operations mentioned in the above article, including suspicious cases referred by the financial and banking units subject to the Central Bank supervision, and to take necessary measures in this regard.
To set up a database of all suspicious cases referred to the Central Bank.
To follow up notifications of suspicious cases referred to public prosecution by the financial and banking units subject to the Central Bank supervision.
To study, analyze and present suggestions regarding types of suspicious operations encountered by the financial and banking system, and to prepare and update a manual on these operations.
To coordinate with the Inspection Section within the Department, in the inspection of units subject to the Central Bank supervision to assess the extent of their compliance with the Central Bank instructions on suspicious operations.
To follow up all local, regional and international developments in the area of suspicious operations and to suggest necessary action at the domestic level in this regard. In carrying out this task, the section is entitled to make contacts with concerned foreign bodies.
To carryout any other tasks assigned to the section.

D- The Secretarial and Typing Unit:

Carries out secretarial and typing work for the On-site Supervision Department.

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Supervision Sector

Basic Functions & Tasks

The functions and tasks of the Supervision Sector, in order to achieve the above mentioned objectives, include the following:

Prepare prudential regulations issued by CBK for all units under its supervision;
Study, and analyze the applications of new entries in the banking and financial system and make recommendations in that regard;
Suggest prudential proposals and recommendations that are deemed necessary to remedy the emerging problems that face the units subjected to CBK supervision, and to follow-up the implementation thereof;
Endeavor to develop and organize both the banking & financial systems, and coordinate between them in such a way that would enhance their role in the national economy, and to direct the available resources towards optimum utilization;
Analyze the data and information forwarded to CBK from the supervised units; and to present recommendations and proposals relevant to supervisory functions thereon;
Study the banking services and products offered to the public by the banking and financial units, and to put forward prudential proposals and recommendations required for promoting such services;
Conduct inspection on all units under CBK supervision (banks, investment and exchange companies and mutual funds); and decide on the extent of their compliance with CBK law provisions and other related laws and resolutions, along with the regulations, instructions and resolutions issued by the Central Bank in relation with the organization of banking and financial business and supervision thereon;
Follow-up the activities of the monetary and financial market, and study the possibility of developing such market in collaboration with the other departments concerned at the CBK, and to put forward the proposals and recommendations that are deemed necessary for incorporating new financial and banking institutions;
Follow-up the developments in interest rates in the local and international markets; study the impact of such developments on flow of funds; and to present the proposals and recommendations that are deemed necessary in this regard together with the other departments concerned at the Central Bank;
Prepare the forms and statements relevant to the statistical data required to be presented by supervised units to the Central Bank, and lay down the definitions and explanatory notes related to such data;
Assist the supervised units toward the optimum application of regulations, by-laws, resolutions, definitions, explanatory notes and forms issued by the Central Bank in connection with the organization of banking and financial business and supervision thereon;
Study and follow-up the developments introduced in the Banking Supervisory Regulations in the other countries Study and follow-up all developments in supervisory functions and regulations issued or recommended by international supervisory agencies in other countries to promote the supervisory procedures and controls adopted over the banking and financial institutions operating in the State of Kuwait.
Upgrade supervisory procedures and policies to be in line with international standards.
Establish Credit Risk Center.

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Supervision Sector

Major Objectives of the Supervision Sector

The Supervision Sector at the Central Bank of Kuwait (CBK) assumes the responsibility of following-up the implementation of the provisions of CHAPTER THREE of the Central Bank of Kuwait Law No. 32 of the year 1968, amended under Decree Law No. 130 of the year 1977, and all relevant Regulations and Instructions issued by the Central Bank of Kuwait. The main purpose thereof is to ensure the soundness and stability of banking and financial system in order to safeguard depositors, and insure that banking and financial units are abided by relative laws, resolutions and CBK instructions leading to proper application of monetary and credit policies.

Name	Dr. Mohammed Y. Al-Hashel	Title	Executive Director, Supervision Sector
Tel Fax	2443381 2401578	Email	supervision@cbk.gov.kw
Name	Abdulhameed Al-Awadh	Title	Manager, On-Site Supervision Department
Tel	2448438	Email	supervision@cbk.gov.kw
Name		Title	Manager, Off-Site Supervision Department
Tel	2440883	Email	supervision@cbk.gov.kw

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No.of Manual	Name of Section
	Introduction
1	Center of Risks system and Regulations Issued for its Implementation
2	Rules And Regulations Concerning Liquidity System
3	Rules And Procedures for Opening Banks' Branches
4	The Maximum Limits for Credit Concentration
5	Basis of Preparing the Closing Financial Statements and Policy of Credit Facilities Classification
6	Resolutions Issued in Respect of Interest Rate Ceilings
7	Discount And Rediscount System of Commercial Papers
8	Instructions Regarding Banks' Purchase of Their Own Shares
9	Rules And Regulations Concerning Local Banks' Extension of KD Credit Facilities to Non-Resident Customers
10	Instructions Issued In Connection With The Rationalization And Organization Of Banks Credit Policy
11	Capital Adequacy
12	Rules And Regulations For The Experience Required For Members Of The Board Of Directors And The Executive Staff, As Per Article (68) Of Law No.(32) Of The Year 1968
13	Instructions Concerning Rules and Regulations for Banks' Extension Of Consumer Loans & Other Installment Loans
14	Instructions Issued In Connection With The Organization Of Local Banks Investment Policy
15	Standards and Controls Regulating the Relation of Banks to their Customers with regard to the Extension of Banking Services
16	Instructions Issued by Central Bank of Kuwait regarding Money Laundering
17	Executive Procedures of the Rules of Item (2) of Article (57) Concerning the Excess of any one Single Person's ownership over 5% of the Capital of a Bank
18	Instructions Concerning Financial Data Prepared to Stock Exchanges Purposes Where a Bank's Shares are Listed
19	Instructions Concerning Buying and Selling GCC Currency Notes
20	Central Registration system for Customers whose Accounts at Local Banks Were Closed
21	Instructions Concerning the Determination of collaterals Acceptable to the central Bank Against its loans to Banks
22	Instructions Concerning the Ratio of National Manpower in Local Banks
23	Instructions Regarding Banks To Maintain The Confidentiality Of Information And Data Concerning Their Customers
24	Instructions Allowing Banks to Continue Holding the Premises Constructed as Their Head Offices, Until Disposal Thereof
25	Instructions Concerning Banks Dealing in Foreign Exchange Transactions
26	Instructions Concerning External Auditors
27	Instructions to Banks on the Necessity of Notifying the Central Bank of Kuwait before proceeding with any communication with regulatory Financial or Banking Authorities in other countries
28	Instructions to Banks Concerning Internal Control Systems
29	Instructions To Banks Concerning Monitoring The Size oF Their Financial Transactions With Banks And Financial Institutions Facing Severe Financial Crisis
30	Instructions Concerning Credit Facilities Extended To Board Directores
31	Instructions Prohibiting Banks From concluding Agreements Amongst them that may prejudice the principle of competition
32	Instructions concerning Banks' Budgets and future Business Plans
33	Instructions to Notify the Central Bank of any Embezzlement of Banks's Funds
34	Instructions Concerning Credit Cards Issued By Local Banks
35	Organization Of Portfolio Management

No.of Manual	Name of Section
	Introduction
	Summary of the Rules of Low No.30 of the year 2003 on adding aspecial section on Islamic banks to the Third Chapter of Low No. 32 of the year 1968 concerning Currency, the Central Bank of Kuwait and the Organization of the Banking Business.
3	Rules And Regulations for opening Islamic Banks Branches within and outside Kuwait.
6	Rules And Regulations for Direct Investment.
7	Instructions Concerning Financial Investment Policy.
8	Regulations Governing Islamic Banks Purchase of Their Own Shares.