CBK Supervisory and Regulatory Framework for Banking

Introduction The CBK is keen on providing an integrated framework of supervisory and regulatory rules that organize banking activity, in line with the role assigned to it by virtue of the provisions of the Law No. (32) for Year 1968 concerning currency, the Central Bank of Kuwait and the Organization of Banking Business, in regard to supervising the banking and financial system in the State of Kuwait and directing its credit policy, thus assisting in the economic and social development and the increase of national income. These supervisory and regulatory rules cover the requirements of capital adequacy, liquidity, the rationalization and organization of the credit policy, the policy for the classification of credit facilities and the calculation of relevant provisions, credit concentration, the organization of investment policy, internal control systems, risk measurement and management systems, rules and regulations concerning the required experience in Banks’ Board Members and Executive officers, and combating money laundering, suspicious operations and the financing of terrorism. Following are some of the supervisory and regulatory rules and regulations concerning the organization of banking business: