Regulatory Alerts2010-03-16
Circular on Investment Placements with Local and Foreign Banks and Financial Institutions
The Central Bank of Kuwait directs all Islamic banks to establish and report maximum finance concentration limits for facilities extended to local and foreign financial institutions. Banks must submit detailed quarterly statements using the prescribed forms, tracking actual concentrations against these limits for both domestic and international counterparties. This reporting requirement ensures prudent risk management while maintaining the exemption of qualifying bank financing obligations from standard single-customer liability caps.
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