10.52 billion KD in “zero-interest” deposits in... banks

- Five categories account for 89 percent of their total value, amounting to KD 3.732 billion

- Deposits with interest rates of 3 to 3.5 percent show the highest growth... while those at 5 to 5.5 percent see the sharpest decline

Data from the Central Bank of Kuwait during the first five months of 2026 showed that non-interest-bearing deposits rose by 3.6 percent, or by a value of KD 367 million, to reach KD 10.523 billion by the end of May. This places them in first place among deposits, holding a share of approximately 25.1 percent of the total deposits of the private sector (residents and non-residents) denominated in Kuwaiti dinar, which amounted to approximately KD 41.916 billion, representing a growth of 1.6 percent or KD 662.8 million.

The Central Bank’s data clarified the diversity of deposits in the banking sector according to interest rates, comprising approximately 11 types. Five of these types account for 89 percent of the total, valued at KD 3.732 billion. Deposits with interest rates between 4 and 4.5 percent came in second place with a share of 18.8 percent, valued at KD 7.877 billion.

Deposits with interest rates from 3 to 3.5 percent ranked third, holding a share of 16.3 percent, equivalent to KD 6.82 billion, with a growth of 23.7 percent, recording the highest growth among deposits since the beginning of the year. Meanwhile, deposits with interest rates up to 2 percent ranked fourth with a share of approximately 16.1 percent, valued at KD 6.77 billion. Fifth place went to deposits with interest rates from 3.5 to 4 percent, accounting for 12.7 percent or KD 5.324 billion, with a decline of 8 percent.

Deposits with interest rates ranging from 2.5 to 2.5 percent (note: likely a typo in source for 2 to 2.5 or similar, translated literally as stated) accounted for 6.5 percent of deposits, valued at KD 2.729 billion, with a growth of 17 percent, placing them in sixth position. Seventh place went to the share of deposits with interest rates from 4.5 to 5 percent, accounting for approximately 4 percent of the total, reaching KD 1.685 billion, despite a decline of 15.5 percent.

Deposits with interest rates of 2 to 2.5 percent ranked eighth with a growth of 49 percent and a balance of KD 126.3 million. Meanwhile, deposits with interest rates above 5 percent ranked ninth with KD 41.8 million and a growth of 2.7 percent. Tenth place went to deposits with interest rates of 5 to 5.5 percent, valued at KD 5.5 million, making them the most declined category. In eleventh place were deposits with interest rates from 5.5 to 6 percent, valued at KD 100,000.

According to the data, the total deposits of the private sector (in Kuwaiti dinar or foreign currencies) rose during the five-month period by approximately 1.37 percent, or by a value of KD 619.8 million, reaching a balance of KD 45.787 billion, compared to KD 45.167 billion at the end of December. They also increased by 4.65 percent, or by KD 2.03 billion, compared to KD 43.74 billion in May 2025.

Deposits in foreign currencies rose by 2 percent, or by KD 124.5 million, to KD 6.241 billion, compared to KD 6.117 billion in December. They also increased by 28.7 percent, or by KD 1.392 billion, compared to KD 4.848 billion in May 2025.

Demand deposits recorded a growth of 4.11 percent, or by KD 382.8 million, to reach KD 9.676 billion, compared to KD 9.294 billion in December. Savings deposits increased by 3.22 percent, or by KD 187.2 million, to reach KD 6 billion, after standing at KD 5.813 billion.

Since the beginning of 2026, deposits in Kuwaiti banks rose by 4.6 percent, or by a value of KD 2.73 billion, to reach KD 61.89 billion, compared to KD 59.15 billion. On a yearly basis, they increased by 10.5 percent compared to KD 55.98 billion.

The rise was driven by an increase in government deposits by 35 percent, or by KD 1.463 billion, to KD 5.643 billion, after standing at KD 4.18 billion in December. Additionally, deposits of financial and non-financial public institutions increased by 6.6 percent, or by a value of KD 651.5 million, to reach KD 10.46 billion, compared to KD 9.809 billion at the end of December.