KUWAIT, June 10:- Kuwaiti Banking Association declared on Wednesday there would be no distribution of cash profits to banks’ shareholders for 2020.
The association said in a statement that the decision was taken to enable the banking sector play the financial brokerage role, ensure liquidity flow and operations in various economic sectors until current extraordinary circumstances created by the coronavirus pandemic cease to exist.
The declaration was publicized on the heels of regular meetings that had been held with the Central Bank of Kuwait, following up on the sector condition in shadow of the pandemic and its fallouts.
The announcement is in harmony with criterion of the Basel committee for overseeing banking sector, adopted by the CBK as part of the measures to cope with the coronavirus repercussions.
Such an approach is intended to bolster rating of the sector and its credit status in tandem with identical measures adopted globally. (KUNA)