Governor of the Central Bank of Kuwait (CBK) Dr. Mohammad Y. Al-Hashel said here on Saturday that there had been an Exchange of Letters between the CBK and the China Banking Regulatory Commission (CBRC) for mutual cooperation in the field of banking supervision within the framework of guidelines and recommendations promoted by the Basel Committee on Banking Supervision (BCBS), and for the exchange of information on banking matters between the State of Kuwait and the People's Republic of China.
Speaking to KUNA, the Governor said that one of the Kuwaiti banks, namely the National Bank of Kuwait, has a presence in the People's Republic of China and similarly, a Chinese bank, the Industrial and Commercial Bank of China (ICBC), has a branch in Kuwait, which have been approved by the CBK Board of Directors and Kuwait Council of Ministers became licensed to operate in the State of Kuwait on 18th May 2014.
The Governor also clarified that as per regulations laid down by the CBK for the licensing and operation of branches of foreign banks in the State of Kuwait, regulatory authorities in which the bank is headquartered are required to comply with the principles of consolidated supervision and exchange of information as recommended by the BCBS.
In addition, Article (82) of Law No. 32/1968 of the State of Kuwait concerning Currency, the Central Bank of Kuwait and Organization of the Banking Business, as amended by Law No. 28/2004 entrusts the CBK with the necessary authority for the exchange of data and information with other central banks and regulatory authorities so as to achieve the objectives of consolidated supervision on banks and their branches and subsidiaries, and that such exchange of information should be based on arrangements agreed between the CBK and the relevant authorities in which those banks are headquartered, he added.
Dr. Al-Hashel further explained that the Exchange of Letters between the Central Bank of Kuwait and the China Banking Regulatory Commission aims to further strengthen the bonds of cooperation in the field of consolidated supervision and exchange of regulatory information, particularly in the light of lessons drawn from the recent global financial crisis, which nevertheless provided the impetus for cooperation between national authorities especially with regard to the regulation of financial institutions operating in a number of different foreign jurisdictions, as well as providing the basis for joint action by regulatory authorities, so long as such action is in accordance with the laws and regulations of the respective countries in which the banks operate.
The Governor concluded by asserting that the CBK will continue in its endeavors aimed at strengthening banking supervision in line with best practices in banking supervision.