Settlement ops among consolidated local banks dip in 1st 11 mths of ’23
Decrease amounted to approximately KD31.1 bln
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KUWAIT CITY, Jan 14: Settlement operations among local consolidated banks saw an 11.6% decrease over the first 11 months of 2023, amounting to approximately 31.1 billion dinars. This decline, from 267.8 billion dinars in the same period of 2022 to 236.7 billion dinars, occurred despite a 5.9% monthly increase in November, reaching 27.789 billion dinars from 26.23 billion dinars in October. Data from the Central Bank of Kuwait for November reveals a 59.1% annual increase in settlement operations between local banks, totaling 10.32 billion dinars, compared to 17.46 billion dinars at the end of November 2022.
The decline in settlement operations coincided with various factors affecting banks in 2022, notably a 2.6% reduction in new credit facilities, consolidating at 20.72 billion dinars in the first 11 months of 2023 from 21.27 billion dinars in the same period of 2022. Personal facilities showed a 29.8% decrease, totaling 3.38 billion dinars, down from 4.822 billion dinars in the 11 months of 2022. Consumer loans decreased by 6.6% to 852.2 million dinars, and housing loans dropped by 37% to 1.759 billion dinars.
On a positive note, total deposits with local banks increased by 2.9%, reaching 48.269 billion dinars at the end of November 2023 from 46.91 billion dinars in December 2022. The value of checks issued between banks, including the Central Bank of Kuwait and the Kuwait Credit Bank, decreased by 6.4% in November, amounting to 1.503 billion dinars.
On an annual basis, there was a 2.8% decline, reducing the total value of checks issued between banks during the first 11 months of 2023 by 5.7% to 15.676 billion dinars. Check settlements dropped by 7.97% in November to 208.8 thousand transactions, but on an annual basis, it decreased by 0.6%. In contrast, the total number of settlement operations increased by 3.4% over the first 11 months of 2023, reaching 2.254 million transactions from 2.18 million transactions in the same period of 2022.
By Ahmad Fathi
Al-Seyassah/Arab Times Staff
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