CBK to Accept Digital Bank Applications Until End of June 2022
The Central Bank of Kuwait (CBK) issued comprehensive guidelines specifying requirements for establishing digital banks. CBK also published the form for digital bank applications and plans to accept applications until June 30, 2022, with initial approval expected to be granted by year-end.
The guidelines have five parts covering the:
- Definition of digital banks
- Legal framework for digital banks
- Licensed activities
- Phases and procedures for establishment of digital banks as per the published application form
- Supervisory and regulatory instructions and controls
CBK has developed its digital banking framework after benchmarking regulatory approaches of 25 central banks studying use cases from 40 digital bank business models. As per the CBK Governor, the digital banks function within three main models: as a unit within a traditional bank; as an establishment of a standalone digital bank; or as a partnership between traditional bank and a digital institution, wherein the bank handles core banking operations while the digital institution handles relations with customers, trademark, and other areas of operation and service. The CBK Governor anticipates that digital banks will create added value through innovative business models geared to the service of the economy and the public good through targeted access and responsible use of innovative financial solutions, giving utmost care to the integrity and stability of the banking and financial system in the State of Kuwait.
Related Links
Keywords: Middle East and Africa, Kuwait, Banking, Digital Banks, Guidelines, Bank Licenses, Regtech, Fintech, Islamic Banking, CBK
Previous Article
BI Maintains CCyB Ratio at 0% while OJK Launches Green TaxonomyRelated Articles
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.
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.
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.
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
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.
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.
BIS Hub and Central Banks Conduct CBDC and DeFI Pilots
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations
The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector
Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)
EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation
The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)
