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Central Bank of Kuwait approves instructions for leverage ratio standards for banks [ICN.com Financial Markets](ICN.com Financial Markets Via Acquire Media NewsEdge) The Board of Directors of the Central Bank of Kuwait (CBK) approved the guidance for implementing the Leverage Ratio Standards to all Kuwait Banks. Governor of the central bank Mohammad Y. Al-Hashel said on Tuesday in a press statement that the banks' leverage ratio should not exceed 3%. The guidance should go into effect as of December 2014. The leverage ratio is the amount of debt that a bank has, put against its equity. The CBK is apparently seeking to curb the over-accumulation of the banking sector's leverage ratio, which could have significant consequences on the economy and the financial system in Kuwait. This will also help banks improve their capital adequacy requirements. Al-Hashel said the implementation of the standards comes as a part of the central bank's measures to fully employ the international regulatory framework for banks (Basel III). The standards of leverage ratio, among other measures to be implemented soon will help the financial sector absorb any kind of shocks that arise from economic or financial stress. (c) 2014 ICN.COM. ALL RIGHTS RESERVED Provided by SyndiGate Media Inc. (Syndigate.info). |