Featured Product

    CBK Offers Regulatory Stimulus Package for Banks Amid COVID-19 Crisis

    April 21, 2020

    CBK announced adjustments to certain regulations and macro-prudential policy tools to empower banks to address challenges posed by the outbreak of COVID-19. To this end, CBK eased certain capital and liquidity requirements to support bank lending. CBK also notified that Moody's Investors Service placed Kuwait's Aa2 long-term issuer rating on a review for downgrade. CBK also published information on the funding mechanism for finance being extended to the individuals, the small and medium-size enterprises, and the economic entities negatively affected by the COVID-19 outbreak.

    The recent regulatory instructions are a part of the previous actions taken to support vital economic sectors and enterprises with added value to the local economy and to support people and small and medium enterprises and businesses that are negatively affected by the current circumstances. In terms of liquidity, CBK eased certain requirements associated with the liquidity coverage ratio, the net stable funding ratio, and the regulatory liquidity ratio, also increasing the maximum limits for the negative cumulative mismatch and the maximum lending limits to providing financing. Furthermore, to provide more support to small and medium enterprises, the credit risk weight for the calculation of the capital adequacy ratio is being reduced from 75% to 25%. CBK is also allowing banks to release the capital conservation buffers, thus reducing capital requirements. On financing for private housing and development, the new instructions included increasing the ratio of loans-to-value of the property or the cost of development. 

     

    Related Links

    Keywords: Middle East and Africa, Kuwait, Banking, COVID-19, Capital Conservation Buffer, Capital Conservation Buffer, Capital Requirements, SME, Funding Mechanism, Credit Risk, Macro-Prudential Policy, Liquidity Risk, Regulatory Capital, CBK

    Featured Experts
    Related Articles
    News

    UK Authorities Consult on Implementation of Basel 3.1 Standards

    The UK authorities have published consultations with respect to the Basel requirements for banks. The Prudential Regulation Authority (PRA) published the consultation paper CP16/22 on rules for the implementation of Basel 3.1 standards.

    November 30, 2022 WebPage Regulatory News
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News
    News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8597