Regulatory Alerts2004-10-20
Instructions Allowing Banks to Continue Holding Head Office Premises Until Disposal
The Central Bank of Kuwait authorized local banks to retain ownership of real estate properties originally constructed as head offices. Banks may lease these premises to third parties and defer sales until market conditions improve or operational demands increase. The Board of Directors' directive requires financial institutions to implement administrative and legal measures that facilitate this continued holding and leasing arrangement.
24- INSTRUCTIONS ALLOWING BANKS TO CONTINUE HOLDING THE PREMISES CONSTRUCTED AS THEIR HEAD OFFICES, UNTIL DISPOSAL THEREOF
CHAPTER TWO: The Law, Supervisory & Regulatory Instructions & Controls 24- INSTRUCTIONS ALLOWING BANKS TO CONTINUE HOLDING THE PREMISES CONSTRUCTED AS THEIR HEAD OFFICES, UNTIL DISPOSAL THEREOF. GOVERNOR Muharram 14 , 1415 H June 23, 1994 THE CHAIRMAN Instructions allowing banks to continue holding the premises constructed as their head offices, until disposal thereof* We would like to advise you that the Board of Directors of the Central Bank agreed, in its meeting on 12/6/1994, to allow banks to continue ownership of real-estate properties they had built for the purposes of exercising their business, and which they no more need due to decline in the volume of banking business; hence, banks may benefit from such properties by lease to third parties, until market conditions become favorable for their sale, or till such properties are needed by banks again for business purposes. Accordingly, you may take necessary actions in implementation of the mentioned decision of the Board of Directors of the Central Bank of Kuwait. With my best regards, SALEM ABDUL-AZIZ AL-SABAH
- Circulated to all local banks.