Press Releases
CBK Board of Directors reviews developments in the Kuwait Stock Exchange
The Board of Directors of the Central Bank of Kuwait (CBK) held a meeting on Sunday the 21st of September 2008, chaired by CBK Governor H.E. Sheikh Salem Abdulaziz Al-Sabah, in which recent developments in the Kuwait Stock Exchange were discussed. The Board reviewed the local, regional, and international factors influencing activity in the market, in the light of the latest available data and information. The Board concluded that it is important to stress the following points:
* The wellness and soundness of the domestic banking system.
* The Board notes that credit facilities extended by local banks to various economic sectors still trend upwards. By end of December 2007, the balance of these facilities was around KD 20.1 billion, and by end of August 2008 it reached around KD 22.6 billion, i.e. an increase by KD 2.5 billion or 12.4% during that period. Also, the Board notes the banking statistics indicating that the balance of credit facilities for the purpose of purchasing financial securities reached around KD 2166 million at end of May 2008, rising up to KD 2373 million at end of August 2008, i.e. an increase by KD 207 million or 9.6% within the three month period.
Accordingly, and in addition to the positive role of the CBK supervisory regulation in immunizing the domestic banking system, the latest available data clearly indicate that these regulations have not yet become restrictive on domestic liquidity. Local banks, under these regulations, still have adequate room to extend credit in general, and credit for financing trading in local securities in particular.
The CBK Board of Directors, while underlining the above-mentioned considerations, re-emphasizes CBK keenness on taking the preventive and precautionary measures, in the context of drawing and execution of its monetary policy and supervisory programs, that contribute to sustaining monetary stability, curbing inflationary pressures, and strengthening soundness of the domestic banking sector. Needless to mention that CBK keeps under constant review the various elements of its monetary and supervisory policies, and will not hesitate to take the appropriate relevant measure in that regard, including its readiness to provide required liquidity to any unit of the domestic banking system when necessary.
