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‘Vital to raise levels of cash in ATM machines’

CBK asks local banks to provide additional liquidity

KUWAIT CITY, May 18: The Central Bank of Kuwait (CBK) has asked local banks to provide additional levels of liquidity within official channels, particularly the ATMs, in a proactive move by the regulator to boost preparations in the event of any developments in the region, reports Al-Rai daily.

The sources pointed out that the CBK has confirmed in contacts with banks yesterday its conviction that banks have high rates of liquidity surpluses, and that they are able to absorb any unexpected withdrawals of cash.

The CBK has agreed with the banks that in order to enhance confidence in the stability of the banking system, it is important to raise the levels of cash in the ATM machines, in order to enhance the confidence of dealers in Kuwait, especially in light of the growing geopolitical escalation in the region.

While the banks have confirmed their readiness to feed the ATMs with additional liquidity and their ability to cover any unanticipated requests, the CBK stressed its readiness to strengthen banks’ liquidity positions if they need any additional cash support.

The sources pointed out that the coordination of the regulatory system with banks in this regard is a customary precautionary procedure when the regions are experiencing any regional tensions, indicating that this coordination is one of the applications of stress tests prepared by banks and submitted to the CBK on a quarterly basis.

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