Regulatory Alerts2024-09-22
Resolutions Issued in Respect of Interest Rate Ceilings
The Central Bank of Kuwait’s Board of Directors issued a comprehensive framework establishing maximum contractual interest rate ceilings for loans, minimum limits for deposits, and the discount and rediscount rates for commercial papers. These regulations tie rate caps to the Central Bank’s announced discount rate, specify exemptions for non-residents and interbank transactions, and mandate periodic amendments to reflect evolving market conditions. The framework systematically updates applicable percentages from 1993 through 2024, ensuring transparent pricing and regulatory compliance across all local banking institutions.
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