11.9 billion KD value of checks submitted to banks over six months

Checks submitted to local banks declined by 10.7 percent, or 210,000 checks, to 1.741 million checks valued at 11.989 billion Kuwaiti dinars during the first half of this year, compared with 1.951 million checks in the same period last year.

Data from the Central Bank of Kuwait showed that the total value of submitted checks recorded a 7 percent decline, amounting to 912.7 million dinars, compared with 12.9 billion dinars in the corresponding period. The number of customers transacting with checks fell by 16.4 percent to 45,960, a decrease of 9,060 customers.

Returned checks due to insufficient funds rose by 11.24 percent, or 242 checks, to 2,394 checks, compared with 2,152 checks in the first half of last year. The value of these checks increased by 114 percent, or 26 million dinars, to 48.8 million, compared with 22.8 million. These checks were submitted by 1,589 customers, an increase of 11.8 percent, or approximately 168 customers.

The number of bank accounts closed due to returned checks without sufficient funds rose by 18.9 percent, or approximately 62 accounts, to 390 accounts, compared with 328 accounts. This was due to the return of 1,158 checks, representing a 14.7 percent increase. The value of these checks declined by 33.6 percent, or 4.1 million dinars, to 8.1 million, compared with 12.2 million. The number of customers whose accounts were closed reached 371, an increase of 17.4 percent, or approximately 55 customers.

Banks are emphasizing efforts to prevent manipulation of checks or their use as a means to delay and defer payments to third parties, implementing Central Bank directives on the matter by striking out and closing accounts involved in such practices.