BNP Paribas first foreign bank into Kuwait

4th August 2004, Comments 0 comments

KUWAIT CITY, Aug 4 (AFP) - The Central Bank of Kuwait (CBK) has granted an initial accord for French banking giant BNP Paribas to open a branch in Kuwait in line with a new law allowing foreign banks to operate in the oil-rich emirate.

KUWAIT CITY, Aug 4 (AFP) - The Central Bank of Kuwait (CBK) has granted an initial accord for French banking giant BNP Paribas to open a branch in Kuwait in line with a new law allowing foreign banks to operate in the oil-rich emirate.

CBK Governor Sheikh Salem Abdel Aziz al-Sabah said on Wednesday it was the first initial agreement for a licence to a foreign bank to open a branch in Kuwait since the legislation was adopted January 12, said the state Kuwait News Agency.

The licence for BNP Paribas, the biggest bank in the euro zone by capitalisation, still needs approval from the Council of Ministers to become effective.

On January 12, Kuwait's parliament approved a law allowing foreign banks to operate in the emirate after securing approval from the CBK.

The new law stipulated that Kuwaitis must form at least half of the bank's workforce within three years of operation.

"The next phase will witness agreements for more Gulf and foreign banks to open branches in the local market," said the CBK governor, who however said only a "limited number" of licences would be granted in the near-future.

© AFP

Subject: French news

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