Banks move to take full control of cash as new CBK rules reshape liquidity management

Local banks are studying a proposal to establish a special company to manage cash liquidity, following a regulatory directive issued by the Central Bank of Kuwait prohibiting the safekeeping or storage of bank cash with third parties.

Sources familiar with the matter told Al-Rai that the move aims to ensure bank funds are preserved, transferred, and managed solely under the direct responsibility of banks and within the supervisory framework of the Central Bank, in accordance with approved protection, control, and security…