In a testament to the robust financial landscape of Kuwait, local banks have extended loans totaling 2.18 billion dinars to foreign banks, including subscribed bonds, marking a 10 percent growth rate from November 2022 to November 2023. This surge in financial activities reflects the resilience and expansion of Kuwait’s banking sector.
Loan Dynamics and Growth:
As of the end of November 2023, the value of loans from Kuwaiti banks to foreign counterparts reached 2.18 billion dinars, compared to 2.169 billion in December 2022 and 1.962 billion in November 2022. This growth underscores the confidence in the stability of Kuwait’s financial institutions, with the banking sector continually fostering economic ties with international counterparts.
Deposits and Foreign Assets:
The banking sector’s deposits with foreign banks slightly decreased to 6.5 billion dinars at the end of November 2023, compared to 6.6 billion in December 2022. However, the overall foreign assets of the banking sector witnessed a notable increase from 22.749 billion dinars at the end of December 2022 to 24.438 billion, showcasing a robust growth of 7.4%.
Within this, foreign investments contributed significantly, rising from 9 billion dinars in December 2022 to 10.368 billion dinars at the end of November 2023. This emphasizes the proactive approach of Kuwaiti banks in diversifying their portfolios and seeking lucrative opportunities on the global financial stage.
Foreign Loans and Liabilities:
The volume of foreign loans obtained by local banks from foreign institutions reached 1.3 billion dinars by the end of November 2023, compared to 1 billion dinars in December 2022. This upward trajectory in foreign loans suggests a strategic approach by Kuwaiti banks to leverage international financial resources for further growth and development.
The total foreign liabilities of the banking sector are estimated at around 12.6 billion dinars, with approximately 9.4 billion attributed to deposits from non-residents, including certificates of deposit, and 4.3 billion in other miscellaneous deposits. This stability in liabilities reflects the prudent management of financial obligations, fostering a secure and reliable banking environment.
Local Banks’ Asset Growth:
Despite the fluctuations in international financial dynamics, the total balance of local banks’ assets soared to 87.189 billion dinars at the end of November 2023, marking the highest historical figure. This substantial increase of 2.703 billion dinars from the previous month and 3.433 billion compared to November 2022 highlights the resilience and adaptability of Kuwait’s banking sector.
Kuwait’s banking sector continues to thrive, showcasing resilience, adaptability, and a strategic approach in navigating the global financial landscape. The growth in loans, foreign assets, and total assets reflects the robustness of Kuwaiti banks, positioning them as key players in the regional and international financial arena. As the sector continues to evolve, it is poised to contribute significantly to the economic development and stability of Kuwait.
