Investor Presentaiton
Overview of the Kuwaiti Banking Sector
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Snapshot
The Kuwaiti banking sector comprises 23 banks, including five
commercial banks, one specialised bank, five Shari'a-compliant local
banks, branches of 11 international conventional banks and a branch of a
Saudi Arabian Islamic bank.
Highly regulated sector by the Central Bank of Kuwait ("CBK") with a
number of regulations and supervisory norms in place monitoring interest
rates charged, lending limits and concentrations, investment limits, liquidity
and capital adequacy.
The government's financial strengths underpins its capacity to
provide support to the banking sector with historical evidence of support.
Most recently, in 2008, the state offered capital support to one bank as
well as introduced a blanket guarantee on deposits following the global
financial crisis.
Key Indicators¹ (USD bn)
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Overview of Basel III Implementation in Kuwait
In June 2014, the Central Bank of Kuwait announced the implementation
of the Instructions of Basel III Capital Adequacy Framework in its final
format to all local banks.
Minimum Capital Requirements
Kuwait's minimum capital requirements are more stringent, being 2.5%,
higher than the Basel III guidance with full phase-in required by December
2016 (as compared to Basel III's Jan-2019 deadline)
Phase-in Arrangements
Dec-2014
Dec-2015
Dec-2016
Total Common Equity Tier 1
8.5%
9.0%
9.5%
Additional Tier 1
1.5%
1.5%
1.5%
■Loans
■ Deposits
Tier 1
108.3
109.7
104.6 102.5
95.2
96.5
85.4 89.1
89.3
110.7
80.4
82.6
Tier 2
83.7
84.0
10.0%
10.5%
11.0%
2.0%
2.0%
2.0%
Total minimum CAR
12.0%
12.5%
13.0%
D-SIB
2009
2010
2011
2012
2013
2014
2015
الوطني
NBK
Sources: Central Bank of Kuwait
1Loans refers to total credit facilities to resident and deposits refer to private resident deposits, all as reported by the Central Bank of Kuwait
0.5%-2.5% as part of CET1 (by 2016)
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