Mubasher: The banking system’s liquid reserves (excess liquidity) in Kuwait, declined by KWD 170 million in June, accounting for 7.4% of bank assets, according to a recent report issued by the National Bank of Kuwait (NBK).

Bank reserves, including cash, deposits with the Central Bank of Kuwait (CBK), and the CBK’s bonds, shrank to KWD 4.6 billion in June.

Outstanding domestic public debt instruments (PDIs) registered a decrease of KWD 150 million to KWD 3.97 billion, accounting for 11% of the gross domestic product (GDP).

“Net issuance of public debt, which usually draws down banks’ liquid reserves, was negative in June for the first time in years,” the NBK’s report noted.

Credit in Kuwait’s banking system registered a healthy gain in June; however, credit growth slowed to 3.6% year-on-year on base effects.

The month saw a net gain of KWD 388 million in credit, pushing the first half’s growth to an annualised 7.3% (year-to-date).