S&P Global Ratings expects the operating environment to improve For banks in Kuwait This year, thanks to the high oil prices and the continued recovery from the “Covid-19” pandemic.
The agency stated in a report that with the continuation of some restrictions, the strategy of financing the public finances of the Kuwaiti government will remain unclear, given that the debt law has not been adopted so far.
The agency also expected that the rise in interest rates would support the profitability of Kuwaiti banks.
For his part, the economic expert, Muhammad Ramadan, said that Kuwaiti banks will achieve greater profits due to the rise in interest, supported by the increase in bank deposits with the Central Bank of Kuwait.
Ramadan explained in an interview with Al-Arabiya that the biggest factor affecting the performance of Kuwaiti banks is the failure to pass the public debt law, and not allowing the government to use part of the generational reserve.