Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Join the forum, it's quick and easy

Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

Would you like to react to this message? Create an account in a few clicks or log in to continue.
Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    Experts: become a liquidity glut 'time bomb' in the budgets of local banks

    Rocky
    Rocky
    Rocky
    Admin Assist
    Admin Assist


    Posts : 278236
    Join date : 2012-12-21
    • Post n°1

    Experts: become a liquidity glut 'time bomb' in the budgets of local banks Empty Experts: become a liquidity glut 'time bomb' in the budgets of local banks

    Post by Rocky Sun 17 Mar 2013, 1:29 pm

    Experts: become a liquidity glut 'time bomb' in the budgets of local banks


    March 17, 2013 09:20 AM


    Local banks still suffer from the problem of satiety in the financial liquidity that skipped size 12 billion dinars, according to the latest figures of the Central Bank of Kuwait, stressing the governor of the Central Bank of Kuwait d. Mohammed الهاشل in his recent statement that banks have liquidity surpluses over the minimum requirements for legal liquidity ratio specified in accordance with instructions «Central» and of 18%, which accounted for at the end of December 2012 about 27%, citing high percentage of response banks policy «Central» imposed by the banks in the context of style prudential supervision and in line with developments control international banking, are employed as part in deposits and bonds with the central bank, and another part with foreign banks, and the rest do not find a way to employ, or not find Iktrdah, hence the claims banking through exclusives «news» need to stimulate the private sector, and put government projects to drain this liquidity accumulated so as not to explode that bomb ticking in the banking sector at any time without any specific vision and a mechanism to drain that liquidity for the benefit of the banking and private sector and then back to Kuwait benefit year after the wheel of development in the country affected by the process of pumping money into development projects.


    In the beginning, said board member Kuwait International Bank Jassem Zainal: The liquidity glut and liquid assets have become a burden on the banks' balance sheets in light of the difficulty operating environment, and the challenges faced by the private sector, and weak capital spending, noting that the solution lies in the speed put government projects development But seriously to employ funds, warning at the same time exacerbate it very difficult to control it.


    In parallel with this opinion said banking expert Ali Madihim that some local banks have resorted recently to increase lending to individuals within the mechanisms to search for job opportunities for liquidity accumulated, in order to compensate for weak credit growth in other sectors, which will create a new crisis in consumer loans and installment, similar to citizens defaulters crisis, calling for Government action, in order to avoid the ticking bomb blast, which has already confirmed the banking community on the existence of a number of the main reasons that led to the glut of liquidity at banks, namely:


    1 deteriorating conditions of private sector companies in general, and investment companies and real estate in particular since the financial crisis in 2008 and its inability to provide sufficient guarantees for banks.


    2 draws many investors to resort to bank deposits as a safe haven for their money instead of engaging in projects may stop.


    3 government statements that have become vain and bureaucracy and the length of time taken for the approval of any project and scared off many of those responsible for the approval of fear of accountability about what will be spent in the project.


    4 no specific mechanisms and timetables for the implementation of any project in the country, which reflected negatively on attracting any foreign investment to the country, especially in light of the absence of any incentives for foreign investors.


    5 pressure from the central to local banks to set aside additional provisions against loans that are close to defaulting, in addition to launch a package of circulars and decisions over the past two years.


    Those are the main reasons behind the bomb liquidity glut ticking in the banking sector, so loves mitigation, especially after the some banks refuse new deposits from customers, indirectly, which is due to the inability to recruit liquidity resulting from these deposits, due to weak strong growth of the credit market since the beginning of the financial crisis. According to news










    [You must be registered and logged in to see this link.]
    • Back to top
      Current date/time is Sat 28 Sep 2024, 9:57 am