Mubasher: The Kuwaiti financial system has survived a severe drop in oil prices, as the GCC country’s authorities solidified regulatory and supervisory framework.
Positioned at the heart of the financial sector, Kuwait’s banking sector has maintained high capital ratios, comfortable liquidity buffers, and high provisions, according to a report released by the International Monetary Fund (IMF) on Wednesday.
Kuwaiti authorities have implemented Basel III regulatory frameworks and established an agency for capital markets, the Capital Markets Authority (CMA), the report found.
“Kuwait’s limited economic diversification (characteristic of small oil-dependent economies) is directly reflected in the bank-centric financial sector,” IMF revealed.
Moreover, the financial sector is facing some external risks including instability in oil prices and geopolitical tensions.
