Banking

The banking sector continues to follow conservative lending policies as it returns to pre-downturn strength. Thanks to the adroit response of both the government and the central bank, however, the sector is emerging from a challenging period, ready to grow with the wider economy once again. Indeed, limited competition from foreign banks has helped establish Kuwait’s domestic banking system as one of the most robust in the MENA region. The government’s 2010-14 plan is aimed at reviving the economy and overcoming recessionary pressures. The Financial Stability Law, ratified in May 2009, aims to shore up banks, productive sectors and investment companies, and the Central Bank of Kuwait is taking wide-ranging action to help revive banks’ willingness to lend.