KUWAIT CITY, Oct 10: After the Central Bank of Kuwait asked local banks to determine their exposure to Credit Suisse, in terms of financing or investment, if any, informed sources told Al-Rai that government assets, whether affiliated with the Kuwait Investment Authority or the Public Institution for Social Security, are not a candidate for cracking, even if a giant collapses, reports Al-Rai daily. Swiss banks are one of the most important banks in the world.

The sources indicated that the bulk of the relationship of government institutions investing globally with Credit Suisse does not exceed the advisory relationship regarding some investments and mergers. As for the investment aspect of these entities, it is directed more towards American banks such as the Bank of America, Morgan Stanley and other big international banks.

Interest
The sources pointed out that there are likely no deposits for the Kuwait Investment Authority or the PIFSS with Credit Suisse, explaining that the interest in Swiss banks during the past years and the adoption of what is known as zero and negative interest prompted the officials of the two Kuwaiti institutions to switch to banks that pay returns on their money, with a large portion of the dollar liquidity directed to Kuwaiti banks.

The sources stated that in the case of PIFSS, the institution reduced its liquidity levels in the last five years from 42 percent to 3 percent, with the money being invested, which means a decrease in the weight of deposits, taking into account that all financial disputes related to the former PIFSS general manager, late Fahd Al-Rajaan, is connected to Switzerland, which motivated officials to stay away from this market as much as possible. As for the shares of the KIA and PIFSS that can be managed through “Credit Suisse”, the sources indicated that the Swiss bank is not listed with either party in the list of major portfolio managers.