Regulatory Alerts2022-02-01
Maximum Limits for Credit Concentration
The Central Bank of Kuwait issued Instructions No. IBS/101/1995 and subsequent circulars to establish maximum limits for credit concentration across local banks and investment companies. The regulations cap single customer credit liabilities at 15% of the capital base, define eligible collateral exclusions, and impose cumulative limits on connected parties and subsidiaries. Banks must now submit quarterly online reports using Forms AM18 and AM19 to track large exposures, ensuring aggregate concentrations exceeding 10% of capital do not surpass four times the base.
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