CBK Announces the Publication of the Financial Stability Report for the Year 2019 and Kuwaiti Banks' Stress Test Results
The Governor of the Central Bank of Kuwait (CBK) Dr. Mohammad Al-Hashel announced the issuance of CBK’s 2019 Financial Stability Report, the eighth report prepared and issued as the bank seeks to boost transparency by providing reliable information and statistics on the Kuwaiti banking and finance sector.
The Governor stated that FSRs analyze the latest economic and financial developments in terms of their impact on financial stability and the extent to which the banking system is able to face and overcome shocks and continue to fulfill its role of providing financial services and of serving all sectors of the national economy. Dr. Al-Hashel pointed out the topics covered by the report’s five chapters. Chapter 1 addresses banks’ role and performance as financial intermediaries and sheds light on trends in credit distribution and deposits activity. Chapter 2 is dedicated to assessment of risks facing the banking system and addresses the different aspects of credit, market, and liquidity risk. Chapter 3 meanwhile provides an analysis of trends in the banking system’s profitability, solvency, and ability to withstand internal and external shocks within different financial and economic stress scenarios. As for Chapter 4, it covers developments in the monetary, foreign currency, stocks, and real estate markets, which make up the four main components of the country’s financial market. Lastly, Chapter 5 introduces an analysis of the performance of the payments and settlement systems in the State of Kuwait.