- Central Bank data shows steady growth in financial settlements despite declines in cheque clearing and interbank lending.
- The total value of interbank cheque settlements fell 10.9 percent to 6.82 billion dinars, compared with 7.65 billion dinars a year earlier.
Financial settlements between Kuwait’s local banks rose to 132.9 billion dinars during the first five months of 2026, reflecting sustained banking activity and robust interbank transactions despite mixed performance across other key banking indicators.
According to data released by the Central Bank of Kuwait, interbank settlements increased by 5.67 billion dinars, or 4.5 percent, compared to 127.22 billion dinars recorded during the corresponding period in 2025.
While the year-to-date figures showed solid growth, settlements declined on a monthly basis in May, falling 33.7 percent to 21.36 billion dinars, down from 32.24 billion dinars in April.
Cheque clearing activity between local banks, including transactions involving the Central Bank of Kuwait and the Kuwait Credit Bank, recorded a weaker performance during the five-month period.
The total value of interbank cheque settlements fell 10.9 percent to 6.82 billion dinars, compared with 7.65 billion dinars a year earlier.
The number of cleared cheques also declined to 888,900, down from 979,300 during the same period last year, while the average value per cheque stood at approximately 7,679 dinars.
The slowdown continued in May, with the value of cheque transactions dropping 18.2 percent from the previous month to 1.24 billion dinars, while the number of cheques processed fell 16.7 percent to 166,400. The average cheque value also eased slightly to 7,464 dinars.
Interbank lending also contracted during the first five months of the year. Outstanding loans between banks declined 10.7 percent to 4.84 billion dinars by the end of May, compared with 5.42 billion dinars at the end of December 2025.
On a monthly basis, interbank lending fell 10.4 percent, although it remained 47 percent higher than the level recorded in May 2025.
Meanwhile, mutual deposits between local banks declined 25.4 percent during the first five months of the year to 1.50 billion dinars, down from 2.01 billion dinars at the end of December.
Compared with May last year, deposits were down 35.7 percent, although they recorded a 29.9 percent increase over April, indicating a partial monthly recovery.
The latest figures suggest that while interbank settlements continue to expand, reflecting healthy payment flows within Kuwait’s banking sector, banks remain cautious in their lending and liquidity management amid evolving domestic and global economic conditions.
