The governor of Kuwait's Central Bank announced recently that Kuwait would comply with Basel II regulations, which will go into effect at the beginning of the coming year.
The move will make Kuwait the first Arab nation to comply with the regulations, which were agreed upon last year. The guidelines set out to modernize the world's banking system and prevent a potential banking crisis in one part of the world from spreading to another.
Sheikh Salem Abdul Aziz Al Sabah said that the Kuwaiti Central would implement the new rules beginning on December 31, according to <i>Reuters</i>.
Kuwait banks began carrying out tests in August 2005 to implement the new capital adequacy accord in its final form. The accord will be felt most strongly by institutions in the United States, Europe, and Japan.