Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

CBK OKs opening of multiple branches of foreign banks  Join our daily free Newsletter

MENAFN - Arab Times - 26/03/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab Times) Governor of the Central Bank of Kuwait (CBK), Dr Mohammad Y. Al-Hashel announced on Tuesday that CBK's Board of Directors has approved the principals, rules and regulation for the licensing and operations of foreign banks' branches, and the regulations for opening a foreign banks' representative offices, in the State of Kuwait. Permitting foreign banks to open branches is done all over the world and offers competition in the market place whose beneficiary is the consumer, he told KUNA, noting that such competition leads to cost reduction and increased business which add to Kuwait's keenness on becoming a regional financial and economic power house



The Central Bank of Kuwait, he said, allows the foreign bank to open its branches where it desires and will deal with all the branches as one entity representing the original mother branch. The CBK governor added that foreign banks, opening representative offices, will have these offices under the monitoring eye of the Central Bank. For years, the OPEC member's economic performance has lagged other Gulf Arab oil exporters as ingrained political tensions between the cabinet and parliament, and entrenched bureaucracy, have delayed business reforms and multi-billion-dollar infrastructure plans



"The new rules will have a positive impact on the local market as they enrich the type of services being offered, create new jobs and ultimately result in the economic and social growth of the country," the central bank said in a statement. Previously, each foreign bank was limited to opening one branch in Kuwait; that restriction will now be removed, though the central bank will still approve new branches on a case-by-case basis. The new rules also allow foreign lenders to open representative offices in Kuwait, one of the world's major oil exporters, the central bank said on its website (www.cbk.gov.kw)




Kuwait has 11 domestic banks: five conventional, five Islamic and one specialised bank, according to the central bank. There are also 11 branches of foreign banks, including top regional lenders such as National Bank of Abu Dhabi and Qatar National Bank, as well as international heavyweights such as BNP Paribas, Citigroup and HSBC. Other restrictions on foreign banks in Kuwait have limited them to offering investment banking services and banned them from competing in the retail sector. It was not immediately clear whether these restrictions might be eased



Kuwait's 186 billion economy is expected to grow by a mere 3.0 percent this year, the slowest pace among the six Gulf Cooperation Council (GCC) countries, slightly up from an estimated 2.8 percent last year, a Reuters poll of analysts showed in January. The International Monetary Fund said in December that Kuwait's heavy reliance on oil revenues - oil and its products account for more than 95 percent of goods exports - had increased income volatility and risks to long-run growth



"Credit growth in Kuwait has been extremely weak. So one argument would be: let more foreign banks come in and let them compete and perhaps they can kick-start lending more aggressively," said Farouk Soussa, Citigroup's chief economist for the region. "If you speak to people in banks in Kuwait, they are more than happy to lend, provide credit to viable projects and companies. But there are not many of those guys in Kuwait, so it does not matter how much supply you put in, you have to improve demand as well. So I think there is a bit of a problem there." Kuwait attracted mere 4.7 billion in foreign direct investment in a decade to 2012, just 1.4 percent of total flows into the six GCC states, according to the United Nations Conference on Trade and Development

 


Arab Times




  MENA News Headlines
 Sep 24 2016 - Spikes Asia Festival of Creativity 2016 Award Winners AnnouncedMENAFN Press
(MENAFN Press) SINGAPORE, Sept 24, 2016-(ACN Newswire)-The final day of Spikes Asia culminated in a ceremony to celebrate the winners of the annual Spikes Asia Awards. The industry gathered to ...

 Sep 24 2016 - Pagan Ritual for Social Justice is Open to the PublicMENAFN Press
(MENAFN Press) Online PR News – 24-September-2016 – Long Beach, CA – The pagan communitys belief systems are many and diverse. Many pagan spiritual systems are centered around at ...

 Sep 24 2016 - Saudi Arabia offers Iran to reduce oil productionMENAFN
(MENAFN) According to official sources, Saudi Arabia has offered to reduce oil production if rival Iran agrees to cap its own output this year.Accordingly, the offer, which has yet to be accepted or ...

 Sep 24 2016 - Egypt negotiates to receive USD300m of Sinai's loanMENAFN
(MENAFN) According to a government source, Egypt's Ministry of International Cooperation is about to receive Abu Dhabi Fund for Development (ADFD) loans geared for development projects in Sinai.The ...

 Sep 24 2016 - Qatar's CRA to order Ooredoo to provide access to QNBNMENAFN
(MENAFN) The Communications Regulatory Authority (CRA), Qatar National Broadband Network (QNBN) had issued a complaint issued against Ooredoo for not complying with an agreement to provide access to ...

 Sep 24 2016 - Kuwait- Sheikh Sabah Al-Khaled meets Latvian FMKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) NEW YORK, Sept 23 (KUNA) - First Deputy Premier and Foreign Minister of Kuwait Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah held talks here on Friday with Latvian ...

 Sep 24 2016 - Kuwait- Sheikh Sabah Al-Khaled meets Tanzanian FMKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) NEW YORK, Sept 23 (KUNA) -- Kuwait First Deputy Prime Minister and Foreign Minister Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah met on Friday the Tanzanian Minister ...

 Sep 24 2016 - Kuwait- Syria's truce meaningless without split of moderate opposition, terrorists - LavrovKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) NEW YORK, Sept 23 (KUNA) -- Russian Foreign Minister Sergei Lavrov said Friday any cessation of hostilities in Syria would be "meaningless" without separation of ...

 Sep 24 2016 - Kuwait- Still no conclusive evidence IS used mustard gas in Iraq - PentagonKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) WASHINGTON, Sept 23 (KUNA) -- There is "no conclusive evidence" yet that mustard gas was used by the so-called Islamic State (IS) in a recent failed attack on US ...

 Sep 24 2016 - Kuwait- Still no conclusive evidence IS used mustard gas in Iraq - PentagonKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) (Reopens) WASHINGTON -- In Syria, Turkish and coalition forces have cleared five additional villages along Syria's northern border with Turkey. Furthermore, ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help