Regulatory Alerts2022-03-22
Central Bank of Kuwait Instructions on Local Banks' Investment Policy
The Central Bank of Kuwait issued comprehensive instructions requiring local banks to establish formalized investment policies governing their securities portfolios. These regulations mandate strict capital-based limits, capping the total securities portfolio at 50 percent of comprehensive capital and restricting single-issuer investments to 10 percent, while granting exemptions for OECD and GCC government bonds. Banks must implement International Accounting Standards, segregate trading and investment accounts, secure board-approved delegation frameworks, and submit quarterly financial data to ensure continuous regulatory oversight.
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