Regulatory Alerts2004-10-19
Instruction Prohibiting Banks From Concluding Agreements That May Prejudice the Principle of Competition
The Central Bank of Kuwait has issued an instruction prohibiting local banks from concluding agreements that may prejudice the principle of competition. The directive requires financial institutions to cancel existing arrangements, such as coordinated maximum deposit interest rates and foreign currency exchange fees, which previously placed them in a cartel-like position. This mandate ensures that legitimate market competition prevails to protect customer interests and support the sound progress of the banking sector.
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