By: Ahmad Awad

Kuwait – Mubasher: Creating provisions for Kuwaiti banks is expected to slow down in the coming quarters, the CEO of Boubyan Bank Adel Al-Majed said.

Banks have created enough provisions in the past period and are not in need for increasing them in the current time, Al-Majed said on the sidelines of Euromoney Kuwait Conference on Tuesday.

There is a slowdown in the credit process, especially the consumer loans, due to the precautions imposed by the central bank in 2015, the CEO noted.

Islamic banks are participating in financing the budget deficit through debts tools, namely securities, which are issued by the Kuwaiti central bank, he added.

The legislation process for issuing sukuk are almost complete; however, asset mortgage in return for issuing sukuk are one of the obstacles, Boubyan’s CEO said.

Translated by: Ingy ElSafy