Central Bank of Kuwait Issues Regulatory Framework for Open Banking
The bank issued the final regulatory framework for open banking to enable financial institutions to offer new services securely.
Translated by Qiyas from الجريدة — Original source
In line with the Central Bank of Kuwait’s commitment to keeping pace with developments related to modern financial technologies, the Central Bank of Kuwait has announced the issuance of the final regulatory framework for Open Banking. This follows the completion of a review of all comments and observations submitted on the draft regulatory framework, which the Central Bank of Kuwait had proposed in June 2025 to enhance transparency and stakeholder participation.
In a statement, the Central Bank of Kuwait emphasized its dedication to regulating Open Banking activities by establishing supervisory instructions and security, technical, and operational standards aligned with global best practices. This aims to enable financial institutions licensed by the Central Bank of Kuwait to offer Open Banking services in the State of Kuwait.
The statement further noted that the launch of Open Banking represents a fundamental shift in the services provided by the banking and financial sectors. It allows local banks to securely share data with Account Information Service Providers and Payment Initiation Service Providers authorized by the Central Bank of Kuwait, enabling them to introduce new products and services in the State of Kuwait, based on explicit customer consent.
The scope of Open Banking in the State of Kuwait includes services related to providing customers with consolidated information about their bank accounts at local banks, as well as tracking expenses, creating appropriate savings and spending plans, facilitating loan transactions and guarantee letters, initiating payment orders from bank accounts, and identifying and comparing banking products and services to help customers make informed choices.
