The Central Bank of Kuwait (CBK) has published its annual report for the fiscal year 2022-2023, providing insights into significant banking, economic and monetary developments over the period. The report also outlines the bank's efforts to maintain stability and includes an auditors' report on the bank's financial statements.
In a press release from CBK, Governor Basel A. Al-Haroon stated that the bank had adopted a proactive approach to strengthen monetary and financial stability in Kuwait. "The CBK implemented an early intervention strategy and used monetary policy instruments, regulatory policy and macroprudential tools to maintain sustainable economic growth, preserve the attractiveness of its national currency and ensure that banking and finance sector units continue operating smoothly, efficiently and securely," said Al-Haroon.
The same press release revealed that in response to global and local economic positions and monetary trends in major economies, CBK increased the discount rate seven times by a total of 225 basis points to 4.00% at the end of the year. This was compared to 1.75% during the previous fiscal year. The CBK stated this aligns with its gradual and balanced approach to raising interest rates.
According to another excerpt from the press release, CBK continues its efforts to stabilize the KWD exchange rate against foreign currencies. It noted improvements in most monetary and banking indicators during FY 2022/23, such as money supply, deposits, and credit facilities extended by local banks.
In further details provided by the press release, it was outlined how CBK is focusing on strengthening the financial positions of banking and financial units through oversight efforts. Additionally, it highlights initiatives in technology such as innovation in banking, encouraging financial technologies and developing infrastructure for electronic payments. This includes cross-border payments, digital banking transformation, and cybersecurity measures. The report also showcases social responsibility initiatives like their "Be Aware" campaign aimed at raising awareness about electronic fraud, and "Kafa'a," a program designed to develop the financial sector workforce.