Regulatory Alerts2004-10-26
Instructions Concerning the Determination of Collaterals Acceptable to the Central Bank Against Its Loans to Banks
The Board of Directors of the Central Bank of Kuwait authorized maximum interest rates for loans and clearing deficits while mandating a specific list of acceptable collaterals for bank lending. The regulation designates eligible assets including government and foreign treasury bills, various bonds, deposit accounts, certificates of deposit, traded commercial shares and bonds, and accepted commercial papers. These standardized collateral categories enable the Central Bank to systematically secure loans extended to domestic and foreign financial institutions.
Share