AlQabas has a summary of a recent Institute of International Finance ("IIF") Research Note on the Kuwait financial sector - June 1 "Financial Sector Strains are Easing".
Much of the analysis is familiar. Banks have been hurt by the slowdown in commercial real estate, the weakness in the Kuwait Stock Market, the problems of Kuwaiti investment companies. Banks are expected to have another weak year in 2010 as the need for provisions continues. The IIF also noted the unevenness in the banking sector with some banks having relatively low levels of distressed loans 2% and some much higher at 30%. IIF is rather sanguine on the banking sector's prospects.
What is the most interesting "bit" is reflected in the headline that AlQabas used. "Report issued by IIF: Central Bank of Kuwait issued licenses to investment companies but left them without strong supervision/regulation". And this probably explains in part the recent new tougher regulations the CBK issued.
English text of the IIF report here - though you need to be a member with a password to access.
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1 comment:
We have access to the report as a pdf - how to send to you?
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