Public debt table invites small and foreign banks
The article addresses the impact of the unified competitive auction system on the ability of small and foreign banks in Kuwait to participate in government debt issuances conducted by the Central Bank of Kuwait on behalf of the government. This is particularly significant given the rising cost of funding and the limited capacity to withstand low interest rates. The discussion highlights that the new system favors banks with high liquidity, while reducing opportunities for small and foreign banks to participate. This, in turn, affects their flexibility in managing cash flows and limits their capacity to expand in the government debt market.
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