The Capital Market Authority in the State of Kuwait has issued resolution number 170 of 2019 concerning the applicability of Capital Adequacy Instruction to Licensed Persons, and devoted a module in the executive regulations named “Module Seventeen – Capital Adequacy Instructions for Licensed Person”.
We will help your Company comply with the above requirement to prepare the agreed-upon procedures report of the Capital Adequacy Requirements.
According to the provisions of Article 72 of Law No. (32) of the year 1968 concerning currency, the Central Bank of Kuwait, and the organization of banking business, and in keeping with the Basel Committee’s revised capital adequacy framework issued in June 2004, the Board of the Central Bank of Kuwait has resolved that such revised framework shall be applied to the banks in Kuwait using the risk measurement options stipulated in these regulations.
These directives set out the new capital adequacy requirements for calculating and maintaining the minimum capital required for credit, operational, and market risks under the Standardized Approach.
The Central Bank of Kuwait requires in particular that all licensed banks maintain adequate capital, in accordance with these Regulations, against their risks as capital provides banks with a cushion to absorb losses without endangering customer deposits.
