Regulatory Alerts2010-11-01
Instructions Concerning Financial Investment Policy
The Central Bank of Kuwait mandates that all Islamic banks establish a board-approved financial investment policy governing their securities portfolios. The regulations impose strict maximum limits, capping the total portfolio at 50 percent of comprehensive capital and restricting single-issuer exposures to 10 percent, while requiring investments in high-quality, diversified instruments. Banks must implement robust internal delegation systems, adhere to standardized accounting classifications, and submit quarterly portfolio data and performance reports to ensure ongoing regulatory compliance.
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