Regulatory Alerts2023-10-29
A circular dated October 29, 2023 regarding controls on the use of credit cards for purposes of traveling abroad
Dear All, As per the recommendations of the Central Bank, in light of the decisions taken by the Monetary Policy Committee to reduce the reserve requirement ratio (RRR) by 1% for banks with a balance sheet size less than or equal to KD 5 million, and by 2% for banks with larger balances, I would like to kindly request your attention to the following: - The reduction in RRR will be effective starting from October 29, 2023. - The decision is made considering the financial inclusion strategy and aims at enhancing accessibility to finance for the general public as follows: 1. Banks are required to maintain a minimum interest rate on deposits. 2. Authorized banks should increase their Score-I rating of this type of clients to ensure that the interest rates offered by them would be in line with the new RRR rates. 3. The CBR will closely monitor the financial institutions and implement measures if necessary to protect the interests of small customers. Thank you for your attention and cooperation, Sincerely, The Governor of the Central Bank.