Annual Report 2022 - The Beginning of a Journey of Transformation

SNAPSHOT OF KUWAIT BANKING SECTOR $ USD 144 Bn of local bank cash loans* 11 foreign bank branches A 100% Principal Deposit Guarantee Law in effect % 三 Stringent Basel III requirements 22 Banks $ All banks are regulated by Central Bank of Kuwait *Source: Central Bank Table 17 (Q2-2023) % 5 local Islamic Banks 5 Conventional + 1 Specialized Banks % $ The banking sector is highly regulated by the CBK. Leading supervisory practices are in place to monitor interest rates charged, lending limits and concentrations, investment limits, liquidity, and capital adequacy Provisions required by CBK instructions have been more precautionary in nature and higher than the ECL calculated under IFRS 9 according to CBK guidelines creating additional buffers in the banking system The government's financial strength reinforce both capacity and willingness to provide support to the banking sector Capital adequacy standards under the Basel III framework were implemented by CBK in June 2014 Guarantee on customer deposits held with local banks under the Deposits Guarantee Law 15

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