The Central Bank of Kuwait is introducing new rules to govern loan limits at local banks to enhance their capability to extend facilities and boost the economy, the official Kuwait News Agency reported, citing Governor Mohammed al-Hashel.
The new rules allow banks to incorporate other sources of funding in calculating the loan to deposit ratio which varies between 75 percent and 100 percent depending on the maturities of funding resources, it said.
The new rules that replace an 85 percent loan to deposit ratio, will take effect as of May 11, it said.
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