tag:blogger.com,1999:blog-5124857623766724513.post1295670301392453095..comments2024-01-13T08:27:40.266+00:00Comments on Suq Al Mal: Burgan Bank 2Q10 Financials: A Closer LookAbu 'Arqalahttp://www.blogger.com/profile/01296250358695456059noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5124857623766724513.post-80139024575672411072010-08-16T09:48:56.243+01:002010-08-16T09:48:56.243+01:00Laocowboy2
You're spot on the percentages for...Laocowboy2<br /><br />You're spot on the percentages for the special Kuwaiti (non IAS #39 compliant general provisions). No general provs required if exposure is cash collaterlized.<br /><br />When BB issues its 2010 annual report, we should be told (if 2009 is a guide) whether they've gotten CBK approval to move from any amounts general to specific provisions. It was in their Pillar 3 Disclosures section.<br /><br />As to provisioning, I've heard that the CBK is telling banks to provision 100% for their duff investment firm exposure - among other things.Abu 'Arqalahttps://www.blogger.com/profile/01296250358695456059noreply@blogger.comtag:blogger.com,1999:blog-5124857623766724513.post-53831666278415618992010-08-16T06:07:02.267+01:002010-08-16T06:07:02.267+01:00Not Burgan-specific but I believe that the Central...Not Burgan-specific but I believe that the Central Bank of Kuwait tends not to allow Genaral provisions to be moved to cover Specific Provisions needs. The general provision number is set at (I believe)a percentage (1%?) of performing non-government, non-interbank loan exposures plus (again, I believe) something like 0.5% of contingent (L/G and L/C) exposures. Perhaps another reader could provide the current percentage requirements?<br /><br />Any shortfall in specific provisioning is required to be met from the P/L. That said, how fast the shortfall gets to be covered is "by agreement' and I would expect all the banks (except NBK) to see heavy specific provisioning in every quarter this year - and for some probably well into 2011 as well.Laocowboy2noreply@blogger.com