This research examines international banking in Kuwait. The structure of the presentation of the research findings is as follows:
Origins and evolution of international banking in Kuwait
Organization of international banking in Kuwait, together with the major participants in financial banking in Kuwait
Types of products and services offered by international banks in Kuwait
Outlook for the future of international banking in Kuwait
A statistical appendix (providing data relevant to international banking in Kuwait)
Origins and Evolution of International Banking in Kuwait
Kuwait gained political independence from the United Kingdom in 1961. During the three decades before independence, the Indian rupee was the principal currency in Kuwait and a British bank served Kuwait's banking needs. The creation of the Central Bank of Kuwait preceded independence in 1959, and the Central Bank introduced the Kuwaiti dinar on the day of independence.
The establishment of the British bank in Kuwait occurred in 1941, and the bank received a 30-year concession. At the end if the concession in 1971, the Kuwaiti government acquired a 51 percent equity position in the former British bank. The establishment of the National Bank of Kuwait in 1952 with all Kuwaiti ownership also preceded independence. The formation of several more banks after independence created the current banking system in Kuwait. After acquiring the British bank, the Kuwaiti government enacted the law preventing foreign bank participation in Kuwait or foreign ownership of Kuwaiti banks.
The Central Bank of Kuwait regulates and oversees the Kuwaiti financial sector. Under current Kuwaiti law, the requirement is for a majority Kuwaiti equity interest in all banks operating in Kuwaiti. The current Kuwaiti law restricts non-Kuwaiti minority ownership interest in Kuwaiti banks to citizens of other Gulf Cooperation Council (GCC) countries (Kuwait Institute of ...