Regulatory Alerts2005-01-01
Controls for Finance Concentration
The Central Bank of Kuwait establishes maximum finance concentration limits for Islamic banks, capping single customer liabilities at 15% of the bank's capital base and total large concentrations at four times that base. The regulations define calculation methodologies for cash and non-cash liabilities, specify related-party exposure limits, and outline exemption procedures for strategically important projects upon prior approval. Islamic banks must implement robust accounting controls and submit quarterly compliance reports using designated forms to ensure ongoing adherence to these concentration guidelines.
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