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International Monetary Fund. Monetary and Capital Markets Department
This Financial System Stability Assessment paper discusses that Kuwait’s limited economic diversification is directly reflected in the bank-centric financial sector. Banks have high concentrations to single borrowers, large depositors, and sectors, as well as significant common exposures. Risks to the financial sector are mostly external, stemming from oil price shocks, geopolitical tensions, and global financial developments. The risks are mitigated by sizeable sovereign financial assets, and by the ability of public entities to provide liquidity through large deposits. Stress tests suggest that banks are resilient to a wide range of shocks. The newly developed regulatory framework for capital market participants and products is an important step, but some gaps remain. The authorities have made important progress in strengthening the macroprudential framework. The crisis management framework and financial safety net arrangements should be strengthened and further operationalized. The diversification and resilience of the economy is expected to benefit from better financial inclusion of small-and-medium enterprises.
International Monetary Fund

the SC will render this lack of transparency more of a problem than it has been to date. This has been recognized by the CBK, and criteria will be developed for participation in the RTGS system. D. Lender of Last Resort and Deposit Insurance 39. In recent years, the CBK has not needed to provide emergency lending to the banking sector . Contingency procedures exist should they be required. The CBK has authority to engage in emergency lending under Article 41 of the Central Bank Law, which gives the CBK power to provide loans and advances in emergency cases

International Monetary Fund
This Financial System Stability Assessment on Kuwait reviews the macroeconomic environment and gives an overview of the financial system. Financial stability has been effectively supported by prudent fiscal and monetary policies. The banking sector appears sound and is well regulated and supervised. Sensitivity to market risk is limited owing to the short-maturity structure of interest bearing instruments, while exchange rate risk has been contained by strict enforcement of prudential requirements. Equity prices have once again increased markedly and reached new record highs.
International Monetary Fund. Monetary and Capital Markets Department

decision making, which generally requires taking into account a broader range of information. V. Financial Sector Safety Nets and Crisis Management A. Emergency Liquidity Assistance 43. Emergency Liquidity Assistance (ELA) was introduced in 2010 for solvent banks and insolvent but systemically important ones . The new Central Bank Law (CBL) and a regulation on ELA enable the CBK to provide liquidity assistance for solvent but illiquid banks up to 100 percent of Tier 1 capital. The CBL also grants the CBK power to provide emergency liquidity to banks that may

International Monetary Fund. Monetary and Capital Markets Department
This article summarizes the financial performance and crisis management of the Republic of Kosovo. Kosovo’s economic condition shows stability in systematic risks, but it also has vulnerabilities. Kosovo banks are exposed to macrofinancial risks because of its open economy, but the Central Bank of the Republic of Kosovo (CBK) has immensely promoted the growth and stability of the banking sector. CBK should also monitor certain interest rates, tax rates, and foreign rates. The current system should allow the growth of microfinance institutions to reach the competition in the global banking sector.