Regulatory Alerts2010-04-22
Instructions on Financial Data Submitted to Stock Exchanges for Listed Banks
The Central Bank of Kuwait requires listed banks and investment companies to submit quarterly and annual financial statements to the regulator at least one week before their submission to relevant stock exchanges. For Islamic banks, these quarterly reports must exclude profit distributions from net profits to accurately reflect retained earnings. Institutions must also provide advance notification upon board approval of any external stock market listing and ensure timely regulatory review to meet exchange disclosure deadlines.
A) Circular No. (2/IBS/113/2003) Regarding Preparation of Quarterly Financial Data. B) Circular No. (2/BS,IBS, IS,IIS/197/2007) concerning the requirement of notifying the Central Bank of Kuwait in advance in case of listing a bank’s shares on any external stock markets.
29- INSTRUCTIONS CONCERNING THE FINANCIAL DATA SUBMITTED TO STOCK EXCHANGES WHERE A BANK’S SHARES ARE LISTED
CHAPTER TWO: The law, supervisory & Regulatory Instructions & Control on Islamic Banks 29- INSTRUCTIONS CONCERNING THE FINANCIAL DATA SUBMITTED TO STOCK EXCHANGES WHERE A BANK’S SHARES ARE LISTED. A) Circular No. (2/IBS/113/2003) Regarding Preparation of Quarterly Financial Data. 1 GOVERNOR Ramadhan 15, 1424H November 10, 2003 Circular No. (2/IBS/113/2003) To All Islamic Banks
THE CHAIRMAN, Preparation of Quarterly Financial Data In the light of the requirements of Kuwait Stock Exchange Committee and its resolution binding the Kuwait Stock Exchange listed companies to submit quarterly financial data, and in order for the Central Bank to review the data to be submitted by banks to Kuwait Stock Exchange, Islamic banks are required to provide the Supervision Sector of the Central Bank with a copy of the subject data, at least before one week from the date of submission to the stock exchange. In preparing the mentioned data, Islamic banks should not show any profit distributions to shareholders, whether as dividends or bonus shares, during the period covered by these data. Hence, net profits will be shown without addressing the manner of their distribution. With my best wishes, SALEM ABDUL AZIZ AL SABAH
CHAPTER TWO: The law, supervisory & Regulatory Instructions & Control on Islamic Banks 29- INSTRUCTIONS CONCERNING THE FINANCIAL DATA SUBMITTED TO STOCK EXCHANGES WHERE A BANK’S SHARES ARE LISTED. B) Circular No. (2/BS,IBS, IS,IIS/197/2007) concerning the requirement of notifying the Central Bank of Kuwait in advance in case of listing a bank’s shares on any external stock markets. 2 GOVERNOR Muharram 16, 1424H February 4, 2007 Circular No. (2/BS/IBS/IS,IIS/197/2007) To All local banks and investment companies
THE CHAIRMAN, It has been noticed that some local banks and investment companies announce the listing of their shares in some foreign stock markets. Therefore, it is a must, with effect from above date, to advise the Central bank of Kuwait in advance when banks and investment companies board of directors pass a resolution to list the shares of their institutions in any of such external markets. It should also be noted that, as the listing of shares will create a commitment on the part of such banks and companies to comply with the requirements of disclosing the financial statements within the timings determined according to the listing conditions applied by such stock markets, therefore, banks and investment companies have to provide us, after listing their shares, with the quarterly and annual financial statements sufficiently before the timings determined by the management of the stock markets on which such shares are listed, so that we can study and approve those financial statements in preparation for you to announce them in the light of the timings determined by the respective stock markets. With my best wishes, SALEM ABDUL AZIZ AL SABAH