Kuwaiti banks show strong liquidity stability despite regional tensions

2026-03-30 - 07:34

Kuwaiti banks are maintaining strong liquidity levels and customer confidence despite ongoing regional tensions, with cash withdrawal patterns remaining stable, according to banking sources. Sources said ATM cash supply continues to exceed customer demand by comfortable margins, reflecting steady financial behavior even amid the psychological impact of the conflict involving the United States, Israel, and Iran, reports Al-Rai daily. Data indicates that average withdrawals per transaction have remained consistent, ranging between 150 and 200 dinars — in line with pre-conflict levels. Deposit activity has also shown similar stability in both value and frequency. Initial days of the conflict saw a slight uptick in cash withdrawals, but within normal limits. This was followed by a decline in demand, with some days recording withdrawal levels even lower than those seen before the crisis. The trend spans all channels, including ATMs, bank branches, and electronic transfers. Banks, guided by Central Bank of Kuwait directives, proactively increased ATM liquidity as a precautionary measure. However, actual demand has not strained available cash reserves. The continued stability is attributed to strong confidence in Kuwait’s banking system, supported by government-backed deposit guarantees and robust regulatory oversight. Customer activity, including transfers and deposits, remains within normal ranges, with no unusual pressure on banking services. Officials confirmed that no bank has requested additional liquidity support since the start of the conflict, underscoring the resilience of the sector and the overall calm in financial behavior.