Kuwait – Mubasher: The Kuwaiti banking capacity has absorbed, so far at least, the stressful consequences of the latest oil markets' rout, said the governor of the Central Bank of Kuwait (CBK), Dr. Mohammad Y. Al-Hashel at Euromoney Conference.
The governor pointed out that "banks’ capacity to remain resilient is not infinite; a weak economic environment would ultimately put an otherwise stable banking system in considerable stress, eroding its resilience over time."
Al-Hashel indicated that the country's capital buffer and low public debt to GDP open the door wide for gradually applying economic reforms to maintain the economic activity rhythm.
"Fortunately, our financial buffers and low public debt provide us some breathing space; therefore, our economic reforms can be gradual, as long as the momentum is sustained", said the governor.
The modest recovery seen in oil prices earlier this year gives no feeling of complacency as "only comprehensive fiscal and structural reforms would ultimately enable Kuwait to wean itself off oil dependence", the governor concluded.
