- We are not loyal to customers. Our goal is to protect them and not the decision to borrow from them
- We dealt with "trade" to monitor prices for the coming period and maintain an awareness campaign to monitor price increases
- Banks are responsible for studying client credibility and the purpose of funding and advising
- Central Bank places important importance to loans as a central focus of financial and financial stability
- Central Bank decisions help to promote a culture of savings and reduce usability
- 740,000 lenders .. 42% of them are aliens
- 27% The average monthly installments deducted from lending salaries under the maximum 40%
- Inflation has increased by 67% in 13 years. What it costs is 15,000 dinars in 2004 now 25,000
- Salary growth rate of 12% since 2004 .. less than a quarter of price increases during the same period
- 90% of the workforce aged under 50 … they were lent
- A consumer loan has become multi-purpose No longer billing required.
There is no secret that there is a recession in different economic sectors in the Kuwaiti economy. We need heavy decisions that we are familiar with addressing Central Central Bank without fear of using all the financial policy tools to maintain joint economic growth with securing fixed rates of inflation and maintaining the competitiveness of the money against money Foreign to come Decisions to amend the rules and foundations of banks and investment and financing companies for consumer and credit loans in order to raise the maximum economic activity expectations in each sector over the coming period.
Central Bank Governor of Kuwait, Yousef Al-Obeid, said the Central Bank placed a great deal on the issue of the loan as a key element of financial and financial stability, as well as having a direct connection with a large part of citizens and residents.
Al-Abeed said during a press conference held yesterday morning to issue a series of basic reforms placed on banks' rules and giving centers and investment and financing companies for loans and consumer loans. He noted that these improvements were in line with the removal of Kuwaiti's basic economy indicators, the banking sector's performance indicators and a group of Factors associated with these loans and their materials.
He noted that these instructions, which followed a careful and accurate study, aimed at regulating giving banks and financing companies for this type of funding to meet the actual needs of customers, and reducing the excessive use of this money without the need for a necessary customer, adding: "We are not trustworthy Customers who are aiming to protect them, while the decision to lend or not to customers is left".
He noted that these instructions fell on the donor and paid to check the achievement of the prescribed conditions and to study the client's credit status, and to identify the purpose of finance, and to provide financial advice to customers.
Population growth, inflation and wages
Al-Obeid noted that the changes among the variables considered changes in population growth rates, rising inflation, goods prices and salary levels rose since 2004. He noted that the bank had hired one of the international consultants to study & # 39 ; r mater.
He noted that the study included comparing work with some other countries in the region. Finally, it came to the conclusion that adjustments should be made in this regard, taking into account that there is a real need for lending, to promote a culture of savings and reduce utility. He noted that the Central Bank retains the deduction rate as it is for employees 40%, and retires by 30%, which means that there will be no benefit to all the new instructions.
He emphasized that the Central Bank has always been in the process of issuing instructions that emulate the reality and the variables as central banks in other countries following their suit and removing some instructions from it.
At the same time, the slaves emphasized that the Central Bank considered the possibility of rising prices after the new directions came into force. Thus, the Central Bank Governor gave an attention to the Ministry of Commerce and Industry to monitor prices, revealing a rapid awareness campaign, And another 2019 start to inform and clarify customers.
In his part, the Executive Director of the Supervisory Sector at Penchanol Kuwait, Walid Al-Awadhi said that the study prepared by the Global Adviser shows that the number of lenders in Kuwait was 739.45,000 lenders, including 429,000 citizens and citizens and the remainder of the remainder, representing 42% of the total number of lenders and representing the total number of lenders 90% of the workforce is less than 50 years old.
He noted that the average monthly salary of the lenders is 1100 dinars, while the average consumer loan is 3,600 dinars, while the average housing loan is 23,000 men, and the average cost of the installment is the share of the monthly installment of net pay 27%.
He noted that the loan portfolio saw a composite growth rate of 14% from 2000 to 2017, jumping from one billion to one billion to a billion, indicating that the growth rate during the period 2000 to 2008 was approximately 18%, while the Growth rate during the period from 2009 to 2017 11%.
Al Awadhi stressed that salaries had grown by 12% between 2004 and 2017, while cumulative inflation rates of 67% rose, which were 15,000 dentists in 2004, which cost 25,000 in 2017.
Al-Awadhi noted that the study included the exploration of existing directions and their development in recent years, looking at the international experiences and their likelihood, studying Kuwaiti bank proposals and the needs of customers and study the development of loan balances in banks' budgets and their impact on the macro-economy.
He noted that the purpose of the instructions is to regulate giving money to meet the real needs of customers, by continuing to grow banks and meet the needs of customer financing, and to support financial stability and macro-economy and reduce the excessive use of these instructions , except the target set.
He noted that the instructions stressed the need for the donor to study the financial position and credit of the client and to find out the purpose of the loan and the size of the need for customers, and advise and advise customers for their needs and & # 39; your obligations, and the risk of increasing the liabilities.
BAY BAY INVESTIGATIONS The client is free to spend the amount of the loan
Referring to the cancellation side of bills on consumer loans and limited to housing loans only.
Al-Awadi emphasized that the consumer loan has become multi-purpose to fund the personal needs of consumers and no longer requires documents that show use. The purpose of the housing loan has clearly defined as the restoration, construction or purchase of private houses.
In recent years, there has been a wide phenomenon of falsifying invoices to submit to banks if a consumer loan was within one year more than that of having the loan. In the absence of such invoices that show the aspects of the distribution of the loan value, the client is being suspended from obtaining new loans from Kuwaiti banks Mainly on credit growth during that period .
With multiple uses and spending aspects of consumer loans, it has become harder for you.
Modify the loan to regular customers only with current interest and cancellation of the old contract
Kuwait Central Bank (CBK) has clarified the terms and conditions required to amend the terms of the contract and re-arrange the new loan. He pointed out for the consumer loan that reorganization of the regular customer funder was entitled to pay at least 30% of the fixed installments of the loan. Date of giving the new loan.
He explained that the interest rate will be used at the time of the new contract. The new loan will be allowed under a new contract and the old contract will be canceled. The maximum loan and installments will be calculated according to the client's financial conditions at the time of the new contract.
Therefore, the client benefits from adjusting their salary or lowering the discount rate or setting it off compared to raising interest rates on large money such as the dollar.
In the case of the housing loan, given to the citizens of Kuwaiti only to build or renovate the house, the previous conditions apply, but the maximum repayment period is 15 years of & # 39 ; the date on which the new loan was granted.
Reorganization of assumptions for acceptable and very few reasons
Kuwait Central Bank explained that, if the customer fails to repay the loan, it can be reorganized according to the following controls:
* The scheduling process should be restricted to protect the donor's rights, and for convincing reasons as the client has already failed to pay in a way that makes it difficult for him to take action legal.
* The reorganization process does not result in the provision of any new loan to the client other than the loans given to it to be arranged.
* For consumer loans, the repayment period should not exceed one year, with the exception of the repayment period specified for the maximum 5 year loan.
* For housing loans, the repayment period will not exceed three years.
* The donor must prepare a statistical record showing re-organization cases, according to the reorganization date, and notify CI-Net.