cond way that a foreign bank can participate in the banking sector in Kuwait is as a member of a syndicate providing loans to fund major projects in Kuwait. For projects in Kuwait, a Kuwaiti bank heads such a syndicate, but it is not atypical for a group of foreign banks to provide a majority of the funding (Everett-Heath, 2001).
Types of Products and Services Offered by International Banks in Kuwait
The leading foreign banks participating as correspondent banks with Kuwait banks are Citibank (United States), Credit Lyonnais (France), and Deutsche Bank (Germany). These banks offer will account services through the correspondent bank arrangement with Kuwaiti banks, but they do not provide loan services through the correspondent banking arrangements (Heritage Foundation, 2001).
The liquidity of domestic banks in Kuwait is very high. The domestic banks, therefore, typically provide most of the financing for projects in Kuwait. Large-scale participation by foreign banks in financing major projects in Kuwait is rare ("Kuwait:
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