Kuwait banking forum reaffirms banks’ lending commitments

October 14th, 2008 - 11:43 am ICT by IANS  

Dubai, Oct 14 (IANS) A banking forum in Kuwait has reaffirmed the commitment of banks in that country to provide all needed forms of financial support for their clients.In a statement, the Kuwait Banking Association (KBA) said local banks would provide lending to clients after separately studying each case, the state-run Kuwait News Agency (KUNA) reported.

It said all banks in the country were aware of the critical international economic situation and the resultant credit crunch.

The KBA statement came even as that Gulf nation’s government announced a series to restore investor confidence after the local bourse was severely impacted by the global crisis.

On Monday, the Kuwait bourse was the only one in the region to close in the red after other Gulf markets rose, buoyed by assurances of liquidity and interest rate cuts announced by Gulf governments.

The KBA, in its statement, also praised the “wise and swift” measures taken by the Central Bank of Kuwait (CBK) to minimise the impact of the international financial crisis on the national economy by cutting down the interest rate to 4.5 percent and raising the ceiling of lending to local banks.

CBK has also raised the rate of the credit facilitating portfolio from 80 percent to 85 percent of the average daily deposits.

KBA said such measures have a “positive impact” on local banks’ lending ability.

Having representatives of local banks as its members, KBA’s aims are to enhance cooperation amongst banks, as well to monitor a quality control system for the country’s banking sector.

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