The Supervision Sector at CBK assumes the responsibility for implementing Chapter Three of the Central Bank of Kuwait Law and all related regulations and instructions issued by CBK. The main purpose thereof is to contribute to the soundness and stability of the banking and financial system in order to safeguard depositors, and ensure that banking and financial institutions abide by relevant laws, resolutions and CBK instructions leading to proper application of monetary and credit policies.

Contact Details:

Operations & Research Sector is responsible for activities conducted in the Foreign Operations Department and Economic Research Department – thereby integrating the development and production of economic analysis with the execution of financial transactions in domestic and overseas markets.

Contact Details:

The Information Technology & Banking Operations Sector is responsible for the overall information technology environment at CBK, as well as banking services and operations offered by the Central Bank of Kuwait. These include the activities of: the Banking Operations Department, Information Systems & Operations Department, IT Strategic Planning Department & IT Security Unit.

Contact Details:

The main tasks of the Executive Director of Organization and Administration Sector are to supervise the functions of the Human Resources Department such as: providing individualized services in personnel affairs, developing plans and programs that aim at improving ways and methods of work in addition to the level of staff performance, as well as developing and updating the CBK personnel career tracks. Furthermore, the sector is responsible for supervising the tasks of the Administrative Services Department’s functions of the Security and Safety Section and the Maintenance Section, as well as proposing plans and policies for the programs of the Public Relations Section, and following-up the procedures of the Services and Printing Section.

Contact Details:

The department assumes the responsibility for monitoring the activities of banking and financial institutions [banks, investment companies (with respect to finance activity), finance companies, and exchange companies] to ensure compliance with applicable laws, supervisory instructions and policies.

The department also carries out the responsibility for combating money laundering, terrorist financing and other suspicious transactions, and proposing the related policies and supervisory resolutions thereof.

Finally, the department is involved in monitoring the complaints received from the supervised institutions’ customers to ensure the efficiency of corrective measures taken by the concerned financial or banking institution.

Contact Details:

The department assumes the responsibility for monitoring off-site duties across the activities of banking and financial institutions, in order to ascertain the soundness and stability of the banking and financial System.

The Off-site Supervision Department receives periodic financial returns from institutions subject to CBK supervision, issues supervisory regulations, resolutions and instructions to such institutions, reviews and analyses ongoing banking and financial trends and monitors their impact on the soundness and stability of the institutions subject to CBK supervision.

The department also performs studies to assess applications to establish new banking and financial institutions or for new branches, articles of association, banking services and by-laws; and organizes and maintains registers of the institutions subject to CBK supervision.

The Off-site Supervision Department prepares CBK recommendations on issues concerning banking and supervisory conditions, and develops a dialogue with worldwide supervisory bodies and concerned international institutions, to stay informed and updated on the latest worldwide trends and developments in the area of supervision of banking and financial activities.

Contact Details:

Foreign Operations Department (FOD) is responsible for the execution of monetary policy. For that purpose, it utilizes open market operations in government bills and bonds and conducts other operations in the local money market. Since 20th May 2007, FOD daily declares the exchange rate of the Kuwaiti Dinar which is determined on an undisclosed basket of foreign currencies in accordance with Decree No. 147/2007. FOD also formulates and implements policies with respect to the management of the CBK's official foreign reserves. Additionally, the Government of Kuwait's foreign currency business with respect to international trade, the issuance of letters of credit, exchange are handled within the Foreign Operations Department. The Department is also responsible for maintaining foreign correspondent relationships as well as creating and maintaining secure procedures for the communication and transaction of payments.

Contact Details:

This department is concerned with following up and studying domestic and international economic developments, their future directions, and expected impact on the performance of the economy of Kuwait in general, and its banking and financial sector in particular, so as to enable the Central Bank of Kuwait (CBK) to achieve its objectives. The department also follows CBK's relations with regional and international bodies such as the Gulf Cooperation Council and the International Monetary Fund. Furthermore, the department contributes technical views within CBK's role as financial advisor to the government. Towards these objectives the Economic Research Department collects and analyzes various economic data from diverse sources, prepares Balance of Payments data for Kuwait, and publishes statistical bulletins and economic reports. In addition the department manages and updates CBK's website and provides up to date economic and financial information to researchers within and outside CBK.

Contact Details:

The Information Systems & Operations Department provides information technology services to all CBK sectors, departments and offices. The department develops systems, applications and technology solutions that are in line with IT sector strategic direction through state of the art technology. It establishes plans to maintain a resilient and continuous operational infrastructure to support CBK current and future strategic directions. Additionally, the department provides technical support for all the users of CBK systems and services.

Contact Details:

The IT Strategic Planning Department develops strategic plans for information technology for all CBK sectors, departments and offices. IT Strategic Planning establishes, based on research and internal studies, proper IT policies and procedures that are in line with best international standards, and ensures adherence to policies and procedures using suitable quality measures. Furthermore, the department ensures proper management and execution of CBK’s IT projects. The department is also responsible for reviewing CBK’s existing processes and procedures to improve their effectiveness and efficiency. In addition, the department is involved with continuously raising IT awareness and supporting IT education and training.

Contact Details:

The Banking Operations Department falls under the Information Technology and Banking Operations Sector and undertakes the following duties and responsibilities:

• Managing the government's accounts and acting as the State's Bank.
• Operating the Real Time Gross Settlement System - KASSIP (Kuwait's Automated Settlement System for Inter-participant Payments).
• Providing credit facilities to local banks by discounting and rediscounting of commercial papers or by lending in accordance with the regulations and instructions in this regard.
• Overseeing the National Payment System and other financial settlements.
• Managing the internal accounts of the Bank.
• Preparing and executing CBK's budget.
• Preparing financial statements and reporting.
• Acting as custodian of the Bank's precious assets such as gold, banknotes, and coins.
• Operating the national cheque clearing system.
• Managing all aspects of currency printing and coin minting, in addition to safekeeping and destruction of unfit notes.
• Inspecting local banks to verify their commitment to CBK's instructions and circulars regarding sorting and examination of Kuwaiti currency for fitness & counterfeiting.
• Designing, minting, and selling commemorative coins and papers.

Contact Details:

This department is concerned with following up on human resources matters in the Central Bank of Kuwait (CBK) and developing plans for occupational development, in addition to identifying and addressing training needs. The department also plans, coordinates and follows up on training programs, develops organizational and occupational structures and work procedures. The department also prepares jobs descriptions, and evaluations and develops salary and benefit systems. Moreover, this department is responsible for completing and following up on all processes for hiring qualified employees, and related salaries and benefits issues, in addition to maintaining and archiving all documents related to human resources, and issuing necessary statistical information.

Contact Details:

The main functions of the Administrative Services Department are to procure the Bank's equipment and supplies, maintain the premises and annexes, supervise the maintenance of equipment, and provide printing, packaging and binding services. Other functions of the department are to distribute economic reports and publications, organize conferences and seminars, and participate in national ceremonies and events. The department also assumes the safety and security functions for the protection of CBK's property, staff and clients.

Contact Details:

Governor's Office Functions

The Governor's Office is entrusted with the responsibility of facilitating and organizing the communications with the Governor from inside and outside the Central Bank, as well as coordinating with the Bank's departments, offices and other external parties regarding the tasks that need to be accomplished by the Governor's Office.

Contact Details:

Tasks of the Deputy Governor's Office

Supervising all affairs related to the Deputy Governor’s Office, following-up on the implementation of decisions and recommendations emerging from meetings held by the Deputy Governor, following-up on the organization of data and information, as well as maintaining their confidentiality.

Contact Details:

Objectives:

The main objectives of the legal office are to monitor the implementation of the provisions of the CBK Law, to ensure that the Bank's activities are conducted in accordance with the law, and to provide consultation regarding all legal activities concerning the application of the provisions of CBK Law, rules and regulations in force in the Bank's various departments and related external bodies.

Functions:

• Applying provisions of the CBK Law, rules and regulations issued by the Bank, and recommending amendments, as needed.
• Preparing drafts of the regulations and provisions issued by the Board of Directors of CBK or by the Governor.
• Preparing contracts and agreements involving CBK.
• Responding to questions and inquiries from departments inside the Bank, or from third parties outside the Bank concerning the application of provisions of the CBK Law, rules, regulations, decisions in force, as well as all legal matters involving CBK.
• Conducting necessary investigations of the administrative offences of CBK employees.
• Preparing statements of legal rules and procedures of the banking operations conducted by CBK with others, such as cheque cashing, and documentation letters of credits and assuring their conformity under law.
• Preparing studies of proposed or approved legislation related to CBK or to banks, and finance companies.
• Preparing legal opinions issued to the banks and to other third parties and carrying out cases involving CBK.

Contact Details:

The Internal Audit Office reports directly to the Governor in order to exercise its powers, competences and responsibilities independently and not subject to the authority of any of other department in CBK.

Objectives, powers, and competencies:

• Safeguarding all the Bank's assets and applying procedures that ensure efficient operations and organization, as well as ensuring the validity of all liabilities.
• Reviewing internal control systems for the Bank's transactions, ensuring the effectiveness of their application and submitting reports of any possible gaps.
• Working with other departments to determine the transactions (including new transactions) subject to audit, either directly or through sampling.
• Ensuring that all transactions are recorded according to the instructions and regulations issued by CBK, and under Generally Accepted Accounting Principles.
• Verifying that the budget and the profit and loss account truly reflect the Bank's financial position.
• Supervising budget expenditure items.
• Collaborating with other departments to address accounting policy issues.
• Collaborating with the CBK's external auditors.
• Developing audit systems and programs in the Bank and tracking global developments in internal audit.
• Submitting reports to the Governor regarding sensitive issues.
• Supervising automated systems and assuring that proper security systems are in place.

Contact Details:

The objective of the Financial Stability Office (FSO) is to not only ensure stable banking institutions on an individual basis in accordance with micro prudential supervision, but also a robust financial system within the framework of macro prudential supervision. The tasks and responsibilities of the FSO include contributing to a sound financial system capable of withstanding financial and economic shocks; enhancing financial stability and alleviating the impact of financial stress by applying an early warning system based on an objective assessment of risks; and utilizing financial stress testing and macroeconomic models in identifying key vulnerabilities and suggesting appropriate corrective measures. Moreover, the office assists in maintaining an effective internal supervisory system, and promoting sound risk management and governance practices in financial institutions.

Contact Details:

The Central Bank of Kuwait is managed by a Board of Directors consisting of the Governor of CBK as chairman, the Deputy Governor of CBK, a representative from the Ministry of Finance and a representative from the Ministry of Commerce and Industry. In addition, four other members with experience in economics, finance and banking are appointed by decree for a three-year renewable period.

The powers exercised by the Board of Directors, as specified by Article 26 of Law No. 32 of 1968, are as follows:

1. to draw up the monetary and credit policy of the Bank

2. to decide on matters relating to the issue, circulation and withdrawal of currency

3. to determine the system of discounting and re-discounting commercial papers and of granting loans and advances, and specify the collaterals required

4. to fix the rates of discount, rediscount, interest and commission to be charged by the Bank on loans, advances and the discount of commercial papers

5. to decide on matters relating to the organization and supervision of the banking business

6. to consider applications received from the Government for advances

7. to fix the maximum limits for advances and loans which may be given to banks operating in Kuwait

8. to fix the amounts allocated for the purchase and discount of public securities or Government Treasury Bills

9. to establish clearing centers

10. to establish the Staff and Employees Pension Fund and decide on contributions by the Bank to the said Fund

11. to approve the estimates of annual revenues and expenditures

12. to periodically review the position of the Bank and the progress of its operations

13. to approve the Bank's annual balance sheet, profit and loss account and closing account. The Board's approval of the Bank's revenues and expenditures estimates, balance sheet, and profit and loss account is subject to the Minister of Finance endorsement

14. to approve the Bank's annual report to be submitted by the Governor to the Minister of Finance in accordance with the provisions of Article 50 of the Law No. 32 of 1968

15. to issue the internal regulations relating to the financial and administration affairs, as well as any other regulations it deems necessary for the proper management of the Bank

16. to deal with all matters under this Law, or another law, which lie within the competence of the Board of Directors.