Press Releases
CBK Offers a Stimulus Package for Local Banks
The Central Bank of Kuwait affirmed that the Kuwaiti banking sector enjoys strong regulatory indicators that reflect its robust financial position. Financial soundness indicators, including liquidity and capital adequacy ratios, exceed global averages and regulatory requirements by comfortable margins, reflecting the strength of banks' financial positions and their continued ability to face various challenges. This reinforces their ability to sustainably meet their obligations and continue providing banking services with high efficiency and reliability. The Central Bank of Kuwait explained that the banking sector's resilience is a result of the prudent precautionary policies it has pursued over the past years.
In the context of ongoing monitoring of current geopolitical developments, the Central Bank of Kuwait has adopted a package of measures, including regulatory instructions and macroprudential policy tools, related to regulatory liquidity requirements and capital adequacy ratios. These measures aim to enhance the flexibility of the local banking sector to support economic activity and maintain the stability of banking operations. These measures included lowering liquidity standards applied to banks, such as the liquidity coverage ratio, the net stable funding ratio, and the regulatory liquidity ratio, in addition to raising the maximum limits for cumulative gaps in the liquidity system, increasing the maximum available lending limit, and releasing a portion of the capital conservation buffer within the capital base.
