Kuwait Central Bank Governor Sheikh Salem Abdul-Aziz Al-Sabah said there were no Kuwaiti banks or investment houses currently in need of financial help due to the economic crisis. “Any banks that need aid according to the financial stability law will be supported. At the moment there are no banks, no investment houses that need help according to law,” Sheikh Salem said on the sidelines of a meeting of Arab central bank governors in Abu Dhabi on Monday. “So far there isn’t one application.”
Regulators and central bankers are grappling with the fallout from a multi-billion dollar debt restructuring at the two large Saudi family businesses, Saad Group and Ahmad Hamad Algosaibi and Brothers, seen as the biggest blow to hit the Middle East since the start of the crisis. Sheikh Salem declined to discuss the amount of overall exposure to Saudi corporates within the Kuwaiti banking sector. Kuwait’s Gulf Bank was rescued by the central bank in 2008 after derivatives losses. Its troubles had prompted the government to guarantee all deposits in local banks to restore confidence. Gulf Bank said earlier on Monday that its exposure to the Saudi conglomerates could be contained.