Q: What are the factors that underpinned the strong performance of Kuwaiti banks in 2016, despite the headwinds in the domestic and regional economy?
A: Kuwait’s banking sector is well positioned to withstand the lower oil price-related macro shocks, though there are some downside risks. Banks are characterised by a robust financial profile and strong regulatory support. The Central Bank of Kuwait has long been a vocal champion of the country’s wider banking sector, providing banks with the support they need to prosper and remain strong in the face of testing economic conditions, and making the banking sector one of the most stable and resilient banking markets in the Middle East and North Africa region.
