Independence of the Central Bank of Kuwait

Structure and accountability

by Mohammad Al Dabbous

The importance of the central bank lies in its supreme authority to assist with managing monetary policy and supervise commercial banks in addition to its responsibility for the issue and printing of money. Moreover, it has the power to make decisions related to bank resolution, crisis management and deposit insurance, thus it must be independent and without political or economic interference. Central banks in most countries of the world play similar roles, and the Central Bank of Kuwait (CBK) is no exception. Law No 32 of 1968, the year of the establishment of the CBK, stated at art 44 that the bank would in general carry out all operations usually undertaken by central banks.