The Banking Executive Magazine - February 2023 Issue

Kuwaiti Banking Sector Kuwaiti Banking Sector AT A1 WITH STABLE OUTLOOK: MOODY’S According to Moody’s credit rating agency, Gulf banks entered the year 2023 with a strong financial position. In its report, the agency explained that continued economic growth, moderate inflation and strong fi- nancial performance lead to stable expectations of banks in the region, rating the Kuwaiti banking sector at A1 with a stable outlook. There are expectations that oil production will expand in Kuwait until 2027. PERCENTAGE The percentage of non-performing loans in Kuwaiti banks will remain at less than 2 percent of the total bank loans in 2023. The loan loss provisions fully give non-perform- ing loans in Saudi Arabia, Kuwait, Qatar, Oman and Bahrain, which provides an additional degree of basic capital protection. The non-performing loans do not exceed an average of 16 percent of equity and provisions in Gulf banks. ISSUE 170 FEBRUARY 2023 the BANKING EXECUTIVE 29