Kuwait Central Bank Expects Minimal Impact of SVB on Kuwaiti Banks

  • Publish date: Monday، 13 March 2023
Kuwait Central Bank Expects Minimal Impact of SVB on Kuwaiti Banks

On Sunday, the Central Bank of Kuwait confirmed that eight Kuwaiti banks have very limited exposure to Silicon Valley Bank (SVB) after it was closed by US authorities. Basel Al-Haroun, the Governor of the Central Bank of Kuwait, emphasized that Kuwaiti banks are stable and strong due to their significant financial buffers.

The Kuwaiti banks are Warba, Boubyan, Kuwait International (KIB), Ahli United, Al Khaleej, Al-Tejari, Al-Ahli, and Burgan. They have made public statements on Boursa Kuwait's website stating that they do not have any direct or indirect financial ties with Silicon Valley Bank.

A disclosure released on the Boursa website stated that the National Bank of Kuwait (NBK) has limited exposure to a certain entity, amounting to USD 4.9 million (equivalent to approximately 1.5 million Kuwaiti dinars), which is reflected in off-balance sheet items in the form of letters of guarantee.

The governor has stated that the Central Bank has put in place a comprehensive supervisory system to strengthen the banking sector and ensure financial stability. This system includes a set of supervisory instructions and controls for banks to maintain the integrity of their financial positions and improve their financial safety indicators, particularly in relation to key standards such as capital adequacy, liquidity, asset quality, and profitability.

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