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Central Bank of Kuwait issues '23 financial stability report

KUWAIT-- In line with its efforts to enhance transparency, disclosure, and provide reliable information and statistics related to the Kuwaiti financial and banking sector, the Central Bank of Kuwait (CBK) has issued its Financial Stability Report for the year 2023.

Governor of the Central Bank of Kuwait Basel Al-Haroon said in a statement that the report the bank has been issuing for twelve years covers the most important developments related to the financial and banking system in the State of Kuwait during the year 2023.

The year was underscored by the continued tightening in monetary policy adopted by numerous central banks globally in order to combat the unprecedented rise in inflation rates, he said, adding that this coincided with failures in the banking sector that led to the collapse of multiple banks in the US and Europe, while geopolitical tensions continued to rise both regionally and globally.

The report includes analysis of local and global economic developments, a glimpse of the local financial system, and developments in the Kuwaiti banking sector in terms of market, credit, liquidity and operational risks, he added.
It also includes a review of banking profitability and solvency, in addition to the developments in the payment and settlement system infrastructure, the CBK's governor noted.

Included in the report are several boxes touching on emerging issues such as CBKآ’s efforts to curb banking sector liquidity risk and counter digital financial fraud. Also included is a summary of CBKآ’s macroprudential framework and utilization of these tools to bolster financial and monetary stability, in addition to CBKآ’s updated instructions to regulate the electronic payment of funds, updated and promulgated in May of 2023, he said.

The governor concluded his statement by noting that concerned parties and those interested may access the full Financial Stability Report through the Central Bank of Kuwaitآ’s website.