Press Releases

H.E. the Governor of CBK, Sheikh Salem Abdulaziz Al-Sabah, in a press release to KUNA (Kuwait News Agency) stated that the CBK Board of Directors decided to adopt a gradual approach in licensing new Islamic banks whereby two new banks besides the KFH (Kuwait Finance House) shall be licensed in the first stage. Then the policy on licensing new Islamic banks including Islamic banking subsidiaries of traditional Kuwaiti banks shall be closely reviewed in the light of a careful evaluation of the situation.

H.E. the Governor added that a new Islamic bank shall be licensed early next year, established by KIA (Kuwait Investment Authority) with a capital share of 24% with the rest of capital raised through public subscription. The capital of the new bank shall be higher than the minimum statutory requirement of KD 75 million. The licensing policy aims at allowing three Islamic banks including KFH to operate in the first stage, in order to promote a competitive environment for Islamic banking in the local market, avoid any negative repercussions of having too many Islamic banks operating at this early stage, allow time for developing indigenous expertise in Islamic banking that would satisfy the demand on skilled workforce in the next stage, and allow CBK to test, evaluate and adjust if necessary its supervisory policies and instructions regarding Islamic banking.