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, along with studying applications for the foundation of new banking and financial institutions, and the opening of branches for existing units. It also receives the periodic financial data of units subject to CBK 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 CBK supervision if needed and carries out any other tasks assigned to it.


The department encompasses the following sections:

Off-Site Surveillance Section

This section assumes the following responsibilities:

  1. 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 No.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 CBK , along with suggesting adequate penalties to be applied in case of violations.
  2. Prepare periodic reports on the development of the aggregate financial position of banks, finance companies, and exchange companies, and to conclude the trends and indicators of these developments and propose remedies and means that limit any negative reflections thereof.
  3. 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.
  4. Study the closing financial statements of units subject to CBK supervision and prepare the relevant reports needed for the approval of these statements.
  5. 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.
  6. 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 Supervision Sector. This task encompasses the following:
    1. To make necessary arrangements for issuing systems and instructions to the banking and financial units.
    2. To receive queries from units subject to CBK 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.
    3. Preparing and maintaining instruction manuals concerning supervision on banks, investment companies, finance companies and exchange companies.
  7. Prepare studies related to applications for merger of units subject to CBK supervision, and to make recommendations in this regard.
  8. Organize and maintain registers of banks, investment companies, finance companies and exchange companies, and follow up the procedures for entry and modification of data in these records.

Policies and Technical Studies Section

This section assumes the following responsibilities:
  1. 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 Supervision Sector.
  2. Study and prepare CBK recommendations on issues concerning banking and supervisory conditions, which are proposed on the agenda of committees and meetings attended by CBK representatives.
  3. 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.
  4. 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.
  5. Study the applications submitted by banks regarding banking services and financial activities carried out by banks.
  6. Study the applications for the establishment of new banking and financial institutions, 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 CBK supervision.
  7. Participate with other sections in Supervision Sector in the preparation of CBK 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.

The Banking and Financial Statistics Section

This section assumes the following responsibilities:

  1. Receive periodic credit data from units subject to CBK 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.
  2. Prepare aggregate statistics at the banking and financial units under CBK supervision, and provide them to concerned sections in the department and to other concerned departments in CBK.
  3. Prepare all statistical data required for the various studies carried out by Supervision Sector.
  4. Endeavor to develop the means and methods of data transfer from units subject to CBK supervision, so as to enhance the efficiency, accuracy, and security of these data and statistics, in cooperation with the concerned bodies at CBK.
  5. 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.

Credit Section

This section assumes the following responsibilities:

  1. 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.
  2. Provide information on request from the banking and financial system units and other sections in Supervision Sector, at their request, regarding queries on credit clients, according to the requirements of the Centralized Risk System.
  3. Prepare aggregate data and statistics for centralized bank-credit risk on the banking and financial units’ level and periodically prepare related reports.
  4. 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 and installment loans clients against which legal procedures were taken, and periodically prepare related reports.
  5. Receive bank applications presented to CBK, for the discounting and rediscounting 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 CBK.
  6. 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 Supervision Sector.