Financial Stability Report 2013 - State of Kuwait

Financial Stability Report 2013 - State of Kuwait

By EXCPR™ Strategic Consultancy

 

The Financial Stability Report –FSR -for the State of Kuwait has been issued by the Central Bank of Kuwait, which presenting the measurement and capability of Kuwait’s financial system against the global market fluctuation. Then Mr. Nayef A. Bastaki – the founder and MD of EXCPR™ firm – says– our company initiate such project which is aiming to summarize and highlight the most critical items related to the Kuwait’s financial system, and highlight the methodology of preventing such system.

The FSR shows the strong relation between the banking sector in the state of Kuwait with the financial system, which is depending in each other by more than 84.1%. In this regard, the report discuss the total number of banking system in Kuwait, which are five traditional banks ( has 60.4% of the total banking assets in Kuwait) against other  five Islamic banks. 

The report also present the lowering rate for the unstable loans (which contains some classification as “ abnormal”), achieved 3.6%, comparing with 12% in 2009. Such positive direction in the loans situation is due to the direct supervision and decisions form the Central Bank of Kuwait. At the same time, the bank’s allowance has been increased by 135% comparing with 2008 – the world financial crisis.   

From another hand, the Financial Stability Report shows the decrees in the total revenue for the banks in the state of Kuwait, which reach 10% -comparing with FY 2010 – around KD 519 Million. As a result, the traditional banks revenues is covering around two third the total sector revenue, and the same for the total assets. Then, the report present the highest efficient level for the traditional banks in the state of Kuwait, comparing with the Islamic one –which contain some additional operating expenses.

Finally, Mr. Bastaki says, this project will allow the financial decision makers in the State of Kuwait, to manage the strategic direction and find out the critical path to be recover, save resources and then maximize revenue.  

 

EXCPR - Strategic Consultancy Services

 

P.O. BOX 21407 – SAFAT 13075 KUWAIT

Tel: +965 600-excpr (600-39277)

Email: info@excpr.com

Website: www.excpr.com