Basic Functions & Tasks
The functions and tasks of Supervision Sector, in order to achieve the 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 companies (with respect to finance activity), finance companies, and exchange companies], 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 CBK 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 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 CBK;
- Prepare the forms and statements relevant to the statistical data required to be presented by supervised units to CBK, 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 CBK 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.