Adel Al-Majed added, according to KUNA, that in order to face the repercussions of the emerging corona virus (Covid 19), the Governor of the Central Bank of Kuwait, Mohamed Al-Hashel, met with the heads of banks’ boards of directors and executives to provide guidance on the regulatory stimulus package launched by the (Central) to enhance the role of banks in Supporting the national economy in the current circumstances.
Al-Majed stressed the importance of this stimulus package by reducing liquidity requirements and total hedging tools that resulted in providing an additional wide lending space for banks to enable them to provide the necessary liquidity to economic sectors and small and medium enterprises to give them the necessary support to continue in the current conditions and overcome the current crisis.
He mentioned that the hedging policies pursued by the (Central) for more than a decade since the global financial crisis led to building strong capital bases, solid precautionary allocations and hedging fenders that were accumulated within years, indicating that this is the time to take advantage of them..
Al-Majed pointed out that the Central’s directives focused on the importance of the banking sector addressing the repercussions of the current crisis and advancing to the forefront of efforts to support the national economy..
He pointed out that this package will help banks in these circumstances to play their vital role in the economy and motivate them to provide more loans and financing to productive economic sectors and clients who need liquidity that enables them to continue their activities without stopping under these conditions in order to avoid long-term problems that may affect their solvency Finance.
Al-Majed stressed the willingness of the banking sector to play the role assigned to it and its keenness to serve the national economy and employ this package to achieve its goals in addressing the repercussions of the Corona virus crisis.“.