Kuwait: Kuwait accounts for around 6 percent of all Islamic banking assets in the world, KUNA reported. This was disclosed by Waleed Al-Awadhi, executive director of the Supervision Sector at the Central Bank of Kuwait (CBK) .
In his opening address to Annual Meetings of Islamic Financial Services Board (IFSB) in Kuwait on Tuesday, Al-Awadhi noted that the Gulf state, having launched its first Islamic bank in 1977, has been instrumental in the rise of the Islamic finance industry.
He said that Kuwait is working closely with Islamic financial institutions around the world in a bid to give this emerging financial system the exposure it needs. On measures CBK has taken to ensure financial stability, he pointed out that the Kuwaiti bank has spearheaded the local banking sector's efforts to create a financial system that is highly resistant to economic shocks.
Financial stability alone would not suffice, Al-Awadhi explained during the three-day meeting, citing the need for "balanced and steady economic growth" which can be achieved through stringent policies that lead to stability in the financial sector.
The CBK official divulged that conventional banks in the country own more than 60 percent of total Kuwaiti banking assets, adding that the bank stays abreast of financial developments in order to keep the local financial system afloat.
Dishing out statistics, Al-Awadhi revealed that the Kuwaiti banking sector's capital adequacy ratio stands at 18.45 percent. He added that protecting capital requirement is among measures CBK has taken to cope with a capricious financial market.
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