Discuss the Banking Regulatory and Market Framework in Kuwait Using SWOT Analysis
Ashraf & Co. Ltd, Kuwait
- *Corresponding Author:
- Payal Chadha
Ashraf & Co. Ltd, P.O.Box 3555, Block 2
Ardhiya Industrial Area, Kuwait 13036, Kuwait
Tel: +965 24344000
E-mail: [email protected]
Received date April 14, 2016; Accepted date May 16, 2016; Published date May 23, 2016
Citation: Chadha P (2016) Discuss the Banking Regulatory and Market Framework in Kuwait Using SWOT Analysis. Arabian J Bus Manag Review S1:001.
Copyright: © 2016 Chadha P. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
This paper discusses the banking regulatory and market framework in Kuwait. SWOT Analysis of Kuwait Banking Sector addresses the strengths, weaknesses, opportunities and threats. As a major oil exporter, it has enabled Kuwait to erect strong exterior and financial balance sheet situations. The government is a large net creditor and has a high flexibility to respond to external shocks. Since the institutional framework works as an obstruction to effective decision-making in the country with regards to transparency and accountability, political risk is considered as a weakness. Kuwait faces geopolitical risk, similar to its peers in the Gulf Cooperation Council (GCC). Credit risk is high for the Kuwaiti banking sector, as the banks have historically operated with significant exposures to cyclical sectors such as real estate and construction. Finally, Kuwait's legal framework regarding bankruptcy law, creditor rights, and process remains less developed when compared to other parts of the world.