KUWAIT CITY, April 3: The value of financial settlements among local banks decreased by KD 4.67 billion, or 18.3 percent, every month in January 2025, reaching KD 20.75 billion, compared to KD 25.42 billion in December 2024. On an annual basis, financial settlements dropped by KD 3.34 billion, or 13.8 percent, from KD 24.09 billion in January 2024. The number of checks issued by banks, including the Central Bank of Kuwait and the Kuwait Credit Bank, saw a monthly decline of 21.9 percent in January 2025, amounting to KD 1.38 billion, down from KD 1.77 billion in December 2024. On an annual basis, the number of checks declined by 6.1 percent, or KD 91 million, from KD 1.47 billion in January 2024.

The number of check settlements in January 2025 decreased by approximately 31,500 transactions, marking a 14.5 percent decline from 216,500 transactions at the end of December 2024 to 185,000 transactions at the end of January 2025. The number of transactions dropped by around 23,300 year-on year, reflecting an 11.1 percent decrease compared to 208,300 transactions in January 2024. The average value of check settlements fell by 8.6 percent month-on-month in January 2024, amounting to KD 714 million, down from KD 8.216 billion at the end of December 2024, reaching KD 7.5 billion by the end of January. Overall, settlements among consolidated banks declined by 4.8 percent in 2023, decreasing by KD 869 million, from KD 18.02 billion in 2022 to KD 17.151 billion in 2023. Settlement and clearing operations among consolidated local banks declined by 10 percent in 2023, by approximately KD 27.7 billion, from KD 287.6 billion in 2022 to KD 259.9 billion in 2023. The decline amounted to about KD 252.3 billion.

 Checks are exchanged among local banks in Kuwait through the Central Bank of Kuwait via the Kuwait Electronic Check Clearance System (KECCS), which facilitates the electronic clearing of checks issued in Kuwaiti dinars among participating entities (local banks). The Central Bank of Kuwait manages the KECCS and is responsible for its operation and oversight. The Central Bank of Kuwait is a participating entity as the government’s bank. It is responsible for collecting checks on behalf of government entities’ accounts held at the Central Bank. The regulatory framework for KECCS was established as part of its governing rules, which are binding on all participating entities to regulate their relationships.

Data released by the Central Bank of Kuwait revealed that private sector foreign currency deposits decreased by 2 percent, reaching KD 1.8 billion (approximately $5.9 billion). Also, the total balance of local banks’ claims on the Central Bank in Kuwaiti dinars, represented by its bonds, declined by approximately 2.8 percent to KD 1.3 billion (around $4.3 billion). In addition, the total assets of local banks decreased by 0.1 percent in January 2025, reaching KD 91.5 billion (approximately $ 301.9 billion). Net foreign assets of local banks rose by 1.8 percent to KD 15.4 billion (approximately $50.8 billion). Also, the time deposits at the Central Bank decreased by 5.4 percent to KD 700 million (approximately $2.3 billion) in January 2025. Cash credit facilities (loans) increased by 0.2 percent to KD 57.2 billion (approximately $188.7 billion).
By Mahmoud Shendi
Al-Seyassah/Arab Times Staff