Regulatory Alerts2010-04-22
Instructions Concerning Credit Cards Issued by Islamic Banks
The Central Bank of Kuwait issued comprehensive instructions governing credit cards issued by Islamic and local banks, establishing strict limits on borrowing amounts, repayment periods, and debt-to-income ratios. The regulations mandate a maximum credit limit of ten times the customer’s monthly salary (capped at KD 10,000), a non-renewable one-year repayment window, and a total installment cap of 50 percent of net income. Additionally, the directives require banks to implement EMV smart card technology by late 2007, secure guardian guarantees for minors under twenty-one, and enforce automatic limit declines and card suspensions for delinquent accounts.
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