CBK Directory

The Governor's Office is entrusted with the responsibility of facilitating, organizing and coordinating all communications related to the Governor with the internal departments and offices, and the external entities.

Supervising all affairs related to the Deputy Governor's Office, following-up on the implementation of decisions and recommendations emerging from meetings held by the Deputy Governor, following-up on the organization of data and information, as well as maintaining their confidentiality.

The Internal Audit office reports directly to the Central Bank of Kuwait’s Board of Directors in order to exercise its authorities, competences and responsibilities independently without subjecting to the authority of any other department in CBK. Therefore, the Internal Audit office sends its audit reports and recommendations to the Board of Directors directly.

Objectives, authorities, and competences of the Internal Audit office:

• Safeguarding all CBK's assets, and applying procedures that ensure efficiency and productivity, as well as validating all liabilities while considering economic methodology in operations and regulations.
• Reviewing internal control systems for CBK's operations, ensuring the effectiveness of their applications and submitting reports of any possible gaps attached with recommendations of corrective action.
• Ensuring adequacy and proper progress of oversight and security arrangements.
• Working with other departments to determine the transactions that need auditing before or after their implementation as well as identifying transactions that require full audit or sampling.
• Supervising by collaborating with relevant officials on the implementation of new processes that would affect oversight and auditing procedures.
• Ensuring that all transactions are recorded according to the instruction and regulations issued by the CBK and under Generally Accepted Accounting Principles.
• Verifying that the budget balance sheet, along with the profit and loss account, truly reflect the financial position.
• Supervising budget expenditure items.
• Collaborating with other departments to address financing and accounting issues that arise during work.
• Cooperating with the CBK’s external auditors.
• Developing audit systems and programs in the bank while following up with global developments in Internal Audit.
• Submitting reports and recommendations to the Central Bank of Kuwait’s Board of Directors regarding the observations and critical findings.
• Supervising automated systems and assuring that proper security systems are in place.

The Committee shall play a role in presenting opinions and counsel to the Central Bank of Kuwait on Shari’ah compliance of financial transactions between the Central Bank and Islamic banks and finance institutions, on the instructions the CBK issues to these institutions. The Committee will also propose general guidelines for products and services they offer. It shall also propose controls to regulate the business of Shari’ah supervision bodies, conduct internal and external Shari’ah audits, and govern the activities related to Fatwa and Shari’ah supervision at Islamic banks and finance institutions.

The Committee will also preapprove candidates for membership on Shari’ah Boards at Islamic banks and finance institutions, issue final decisions where Shari’ah supervision authorities deliberations are inconclusive, and present Shari’ah-based opinions on matters referred to it by the courts or arbitration centers relating to issues of Islamic banking and finance business.

Objectives

The main objectives of the Legal Office are to monitor the implementation of the provisions of the CBK Law, to ensure that the Bank’s activities are conducted in accordance with Law, and to provide consultation regarding all legal activities concerning the application of the provisions of CBK Law, rules and regulations in force in the Bank’s various departments and related external bodies.

Functions

• Applying provisions of the CBK Law, rules and regulations issued by the Bank, and recommending amendments, as needed.
• Preparing drafts of the regulations and provisions issued by the Board of Directors of CBK or by the Governor.
• Preparing contracts and agreements involving CBK.
• Responding to questions and inquiries from departments inside the Bank, or from third parties outside the Bank concerning the application of provisions of the CBK Law, rules, regulations, decisions in force, as well as all legal matters involving CBK.
• Conducting necessary investigations of the administrative offences of CBK employees.
• Preparing statements of legal rules and procedures of the banking operations conducted by CBK with others, such as cheque cashing, and documentation letters of credits and assuring their conformity under law.
• Preparing studies of proposed or approved legislation related to CBK or to banks and finance companies.
• Preparing legal opinions issued to the banks and to other third parties and carrying out cases involving CBK.

The objective of the Financial Stability Office (FSO) is to ensure the resilience of the financial system against unanticipated adverse shocks. To carry out its responsibilities, the FSO pursues a forward-looking approach to address vulnerabilities, identify and analyze system-wide risks, and alleviate the impact of financial stress by applying an early warning system based on an objective assessment of risks. The FSO utilizes financial stress testing and macroeconomic models in identifying key vulnerabilities and suggesting appropriate corrective measures. Moreover, the office assists in maintaining an effective internal supervisory system, and promoting sound risk management and governance practices within the financial institutions.

The Center of Excellence seeks to build upon the existing innovative culture at CBK and to enhance the organization qualitatively.

The Innovation Hub “Wolooj” seeks to motivate the creative innovators to propose, create and develop ideas by offering an interactive environment for testing the innovative products and services.

The Supervision Sector is tasked with following up on implementation of provisions of Chapter III of CBK Law 32/1968 and amendments thereto and the guidelines and instructions issued virtue of the law to guarantee the integrity and stability of the banking and financial system in such manner that protects customers’ money and also following up on realization of monetary and credit policy objectives. It also has a mandate to oversee and supervise banking and financial system units to guarantee satisfaction of provisions of Law No. 106 of 2013 Regarding the Combating of Money Laundering and Financing of Terrorism.

The Treasury and International Operations Sector (TIOS) is responsible for making recommendations and suggestions necessary to ensure monetary stability in the State of Kuwait. TIOS is also responsible for the implementation of CBK’s monetary policy through monitoring and analyzing interest rates and their impact on local liquidity levels, through withdrawing excess funds and covering fund shortages, based on market trends and central bank practices as a last resort.

The Payment Systems and Currency Sector adopts, manages and develops payment systems and financial transfers in Kuwaiti Dinars using the latest technologies and financial systems, and issues, manages and oversees the Kuwaiti currency, and currency movement and strategic reserve. The Sector also processes all financial transfer transactions (notices/ clearing cheques/ settlements) and monetary transactions (withdrawals/ deposits) for the concerned entities, provides banking services to the public in the banking hall and maintains the valuable assets in CBK vault.

The main tasks of the Executive Director of Organization and Administration Sector are to supervise the functions of the Human Resources Department such as: providing individualized services in personnel affairs, developing plans and programs that aim at improving ways and methods of work in addition to the level of staff performance, as well as developing and updating the CBK personnel career tracks.

Furthermore, the sector is responsible for supervising the tasks of the Administrative Services Department's functions of the Security and Safety Section and the Maintenance Section, as well as following-up the procedures of the Services and Printing Section.

The Economic Research Department is responsible for monitoring and analyzing domestic and international economic developments and their future trends and anticipated impact on the performance of the State's economy in general and the banking and financial sector in particular with the aim of assisting the Central Bank of Kuwait (CBK) to achieve its core objectives. The Department is also responsible for the enhancement of CBK's relations with regional and international bodies including the Gulf Cooperation Council and the International Monetary Fund.

Furthermore, the department contributes technical views supporting CBK's role as a financial advisor to the government of Kuwait. In fulfillment of its objectives, the Economic Research Department collects and analyzes various economic data provided by different sources, and data concerning the Balance of Payments of the State of Kuwait. Moreover, the Department publishes the Annual Report, Monthly Monetary Statistics, Quarterly Statistical Bulletin and Economic Report, and provides up-to-date economic and financial information and data to CBK's and other interested researchers.
In Addition, the Economic Research Department manages and updates the CBK website and handles translation works for the Central Bank of Kuwait.

The Finance Department prepares periodic data and statements of the CBK’s financial position, balance sheet, profit and loss account, budget and the closing account in collaboration with the concerned departments. The Department also prepares the necessary reports to respond to inquiries received from government entities regarding CBK’s expenditures, carry out the procedures with respect to expenditures as per the preset regulations and verifies compliance with all supervisory regulations before the disbursement, prepares the CBK’s financial expenditure reports on a regular basis, and follows up on the permanent and temporary advances.

The Communications and Public Relations Department at the Central Bank of Kuwait (CBK), works towards communicating a modern, transparent and open central bank. The department helps maintain confidence in the banking sector, financial sector and economy and is involved in varied efforts including raising financial literacy to achieve consumer protection and empowerment.

Additionally, the department promotes thought leadership, capacity building and innovation both internally and externally in the banking sector.