Press Releases

H.E. Sheikh Salem Abdulaziz Al-Sabah, the Governor of the Central Bank of Kuwait (CBK), announced that in view of the rumors circulating about losses in some local banks resulting from their transactions in derivative contracts, the Central Bank of Kuwait (CBK) would like to affirm that it has examined all other banks and found non of these local banks incurring any losses in such transactions. H.E. the Governor said, regarding the Gulf Bank and in order to fully reassure the bank depositors CBK reiterates its financial support to the bank and protection of all deposits with it regardless of their type. In addition there is going to be an urgent bill to announce State guarantee of deposits with all local banks.

H.E. the Governor clarified that depositors with the Gulf Bank need not worry about their deposits and should be well aware and confident that their deposits are safe, and that CBK is ready to inject required liquidity into the Gulf Bank, if necessary, in order to help it cover potential deposit withdrawals. H.E. the Governor pointed out that the Gulf Bank is nevertheless well able to continue its ordinary bank activities.

H.E. the Governor concluded his statement by stressing that the banking system in the country is sound, and that the bill of State guarantee of deposits with all local banks intends primarily to bolster the competitiveness of the Kuwaiti banking sector with banks whose deposits have been guaranteed by their states, as well as to infuse confidence in the banking system.