Kuwait-Mubasher: Credit growth in Kuwait reached the most rapid level in a year, rising 6.6% on an annual basis, despite a marginal decline of KWD 22 million recorded in October that followed September’s extraordinary surge of KWD 692 million, according to a report issued by NBK.
“The CBK increased its discount rate by 25 basis points (bps) to 2.25%. The rate had remained unchanged at 2% for over three years,” noted the report.
NBK said that the country’s household debt increased 13.1% y/y to KD 107 million in October.
“Non-bank financial companies resumed their net reduction of bank credit, with a decline of KWD 27 million. Still, the sector’s pace of deleveraging has been easing, dropping to 5.3% y/y in October. It is now less than half its size at its height, back in 2009,” added NBK.
Private deposits kept their decline in October, registering a relatively large drop of KWD 776 million.
Government deposits with domestic banks soared by KWD 219 million in October and were up by KWD 527 million since July 2015.
The ratio of government deposits to bank assets rose to 10% in October from 9% in July 2015.
