Q: How resilient is Kuwait’s banking sector in 2023?
A: The sector is notable for its high liquidity and robust capitalisation, with an overall capital adequacy ratio well above the required minimum level. Additionally, non-performing loans remain low, while loan-loss provisioning is high. The sector’s strong foundations have enabled it to handle the uncertainty caused by the Covid-19 pandemic and other global challenges over the past few years. Meanwhile, government-led pandemic mitigation and recovery actions afterwards have aided the banking system, allowing it to lead a post-pandemic recovery benefitting from a well-capitalised and highly liquid sector balance sheet.
