Hamad Al-Marzouq: Kuwaiti banks have a solid capacity to support the national economy and finance development projects

The Chairman of the Board of Directors of the Kuwait Banks Association and the Chairman of the Board of Directors of Kuwait Finance House, Hamad Abdulmuhsin Al-Marzouq, affirmed that the Kuwaiti banking sector enjoys strong financial positions and high levels of liquidity and capital adequacy, reflecting the robustness of its financial standing and its ability to confront various economic and financial challenges, while continuing its pivotal role in financing economic activities and supporting development and financial stability in Kuwait.

He pointed out that liquidity management in banks is based on the efficient deployment of financial resources and achieving a balance between holding liquid assets and meeting financing needs, in accordance with prudential regulatory requirements and established risk management frameworks. He emphasized that assessing liquidity levels requires looking at the totality of liquid assets, funding sources, and their stability, rather than focusing on a single line item in the balance sheet.

Strong Financials and Prudent Supervision

Al-Marzouq affirmed that the Kuwaiti banking sector relies on an advanced supervisory system overseen by the Central Bank of Kuwait, which is based on the application of international standards for financial safety and risk management, including capital adequacy requirements, the Liquidity Coverage Ratio (LCR), and the Net Stable Funding Ratio (NSFR), alongside stress tests and continuous assessment of asset quality and funding stability.

He clarified that the strength of the financial positions of Kuwaiti banks is evident in their liquidity and capital adequacy levels, which exceed regulatory requirements with comfortable margins, a fact previously confirmed by the Central Bank of Kuwait when announcing the stimulus and precautionary measures it took in March 2026.

He noted that these measures came within the framework of a proactive supervisory policy aimed at enhancing the resilience of the banking sector and its ability to cope with economic and regional developments, while maintaining the continuity of financing flows to the national economy. He stressed that temporary adjustments to certain regulatory requirements do not, in themselves, indicate weakness in the financial positions of banks, but rather reflect the flexibility of prudential tools and their ability to respond to different economic conditions.

Al-Marzouq emphasized that the strength of the banking sector is not measured by changes in the volume of specific financial balances, but by the soundness of banks' financial positions, the quality of their assets, their capital adequacy, the stability of their funding sources, the efficiency of liquidity and risk management, and their sustainable ability to meet obligations and continue providing the necessary services and financing to the national economy.

Financing Capacity and Support for Economic Growth

Regarding banks' ability to continue their credit activities in the coming phase, Al-Marzouq affirmed that Kuwaiti banks possess the necessary financial and operational flexibility to manage their resources and regulatory requirements efficiently. He added that any future adjustments to prudential requirements are made within the framework of adopted supervisory policies, taking into account the preservation of financial stability and the sustainability of banking activities.

He further stated that the continued growth of credit and deposits, according to the latest official data, reflects the banking sector's ability to continue playing its role in financial intermediation, mobilizing savings, and directing resources toward financing economic activities, thereby contributing to supporting economic growth and meeting the financing needs of individuals, companies, and various productive sectors.

Solid Financial and Supervisory Indicators

The Chairman of the Kuwait Banks Association concluded his statement by reaffirming that the Kuwaiti banking sector possesses strong financial and supervisory foundations, and that its advanced levels in capital adequacy, liquidity, and risk management reflect the success of the prudent supervisory approach adopted by the Central Bank of Kuwait, enhancing banks' ability to

Dealing with economic changes and preserving financial stability. He affirmed that Kuwaiti banks will continue to play their pivotal role in supporting the national economy and financing developmental projects and economic activities, relying on solid financial positions, prudent risk management, and a robust supervisory framework, thereby enhancing Kuwait’s position as a financial and banking center characterized by a high degree of reliability and stability.