Date : 14/12/2009
By Ahmad Faraj
KUWAIT, Dec 14 (KUNA) -- Five years ago, Kuwait had only one Islamic bank,
but by 2010, the country will have five Islamic banks, the same number as
traditional banks.
The announcement of the Central Bank of Kuwait (CBK) on Monday giving the
green light for the Bank of Kuwait and the Middle East (BKME) to fully convert
into an Islamic bank raises the number of Islamic banks in Kuwait to four, in
addition to Warba Bank which is currently under establishment.
The total capital of the five Islamic banks is about KD 645 million, around
42 percent of the total capital of the banking sector in Kuwait.
By the end of the third quarter of 2009, one out of the three operating
Islamic banks made profits, while two suffered losses.
The establishment of Warba Bank as a shareholding company with a capital of
KD 100 million was announced a few month ago.
A total of 24 percent of the stocks of the Islamic Sharia compliant bank is
held by Kuwait Investment Authority (KIA), and the remaining 76 percent will
be granted as bonus shares to all Kuwaiti citizens registered at the Public
Authority for Civil Information (PACI) until October 4, 2009.
Traditional banks were negatively affected by the growth of Islamic banks,
therefore several of them began providing Islamic services and products.
In addition, some traditional banks established branches abroad due to the
strong competition locally. (end)
amf.ysa.ris
KUNA 141354 Dec 09NNNN