CBK: Very limited exposure of Kuwaiti banks to SVB collapse

CBK: Very limited exposure of Kuwaiti banks to SVB collapse

KUWAIT: The Central Bank of Kuwait (CBK) affirmed on Sunday that the exposure of Kuwaiti banks to Silicon Valley Bank (SVB), following the closure of the bank by the US authorities, is “very, very limited”. Central Bank of Kuwait Governor Basel Al-Haroun reaffirmed the stability and solidity of Kuwaiti banking system in light of the large financial buffers that banks possess.

The governor said in a statement to KUNA that in light of the closure of SVB by regulatory authorities in the United States, the Central Bank of Kuwait confirms, through its direct communication with Kuwaiti banks, that the exposure of Kuwaiti banks to Silicon Valley Bank is “very, very little”.

The governor indicated that the Central Bank has an integrated supervisory system aimed at fortifying the banking sector and maintaining financial stability. Within the framework of this system, there is an integrated package of supervisory instructions and controls issued to banks to preserve the integrity of their financial positions and enhance all indicators of their financial safety, especially with regards to basic standards.

The governor added that among these standards are the capital adequacy standard, liquidity standards and standards related to asset quality and profitability, in addition to the instructions and controls