Mubasher: Kuwait Finance House (KFH) has announced its response regarding the article published on 19 September 2019 in Al Jarida Newspaper on Turkey asking banks to write off bad loans.

In this regard, KFH emphasised that its KFH-Turkey enjoys a “robust financial position and very strong liquidity ratios”. Moreover, the capital adequacy ratio (CAR) of KFH’s unit in Turkey exceeds the authorities’ requirements, KFH disclosed to Boursa Kuwait on Sunday.

Additionally, KFH-Turkey’s coverage ratios of the NPF is 128%, thus, higher than the average 68% value of Turkish banks.

KFH further stressed that it aligns its banking businesses with “prudent policies and scenarios capable of dealing with any potential negative repercussions”.

Currently, Al Jarida’s news will not affect KFH Group’s financial position, yet the bank will provide any further updates in due course.

It is worth noting that on 19 September, KFH released a statement highlighting that KFH-Turkey managed to build high-quality assets on the back of its diversified and sizable financing portfolio that protected the bank against the volatility of Turkish Lira.