Citibank ending operations in Kuwait? October 15, 2008
Posted by mylastresort in analysis.Tags: banking, Bankruptcy, Banks, Citi, Citibank, economy, global, Rumor, Sub-prime, subprime, Systemic Risk, US
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Lehman Brothers Fate September 14, 2008
Posted by mylastresort in rumors, sovereign funds.Tags: American International Group, banking, Citigroup, Collapse, economy, FED, John A. Thain, John Mack, Lehman Bros, Lehman Brothers, Long-term Capital Management, LTCM, Merrill Lynch, Morgan Stanley, NYC, subprime, US, Vikram S. Pandit, Washington Mutual
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Just like a scene from a movie top banking executives meet at the New York Fed to discuss Lehman Brothers fate. Exactly 10 years ago the same meeting occured to discuss Long Term Capital Managment (LTCM) a hedgefund which collapsed in 1998 and sent the market tumbling.
“I’m hoping that some big firm will want them more than the Fed wants them… The government right now, the Treasury and the Fed among others, they’re trying to work the deal with no government money, as they should.”
- Senator Richard Shelby, Senate Banking Committee
The current roster consists of the following attendees:
- Citigroup Vikram S. Pandit
- Merrill Lynch John A. Thain
- American International Group
- Washington Mutual
- Morgan Stanley John Mack
- Goldman Sachs Lloyd C. Blankfein
- JPMorgan Chase James Dimon
- Credit Suisse Brady Dougan
- Bank of New York Mellon Robert Kelly
- UBS Robert Wolf
- Barclays Bert E. Diamond
Including Henry M. Paulson, Treasury Secretary, & Timothy Geithner, New York Fed president.
Kuwait inflation in double digits August 31, 2008
Posted by mylastresort in analysis.Tags: banking, CBK, Central Bank, CPI, Econony, inflation, kuwait, National Bank of Kuwait, NBK, Reseach
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Kuwaits year-on-year inflation will remain in double digits despite governments plans and Central Bank intervention. The Central Bank of Kuwait (CBK) clamped down on credit and money growth in a bid to drain excess cashflow resulting from high oil revenues. In January CBK Governor Sheikh Salem Abdulaziz AlSabah warned that high inflation constituted a “national challenge” for the oil-rich emirate.
“Inflation should ease as a result of slower economic growth, lower commodity prices, months of tighter money” [and the dinars appreciation against the dollar]
- National Bank of Kuwait
For the past 4 weeks local banks were suffering from a liquidity crisis pushing rates higher for short term deposits. The currency has appreciated 9% since the government dropped the dinars peg to the US currency in May of 2007. Inflation rose to double digits in February (for the first time) to reach a staggering 10.14%, then dropped slightly in March to 10.1%, lastly hitting 11.1% in May.
“NBK expects to see year-on-year CPI [Consumer Price Index] rates in the seven to eight per cent range from now to year-end and that would put 2008 inflation at 10 per cent for the year, compared to 5.5 per cent in 2007″
- National Bank of Kuwait
A report released by National Bank of Kuwait (NBK) said it expects a slight drop in inflation figures for the rest of the year on the back of falling world food and commodity prices. The report expected a sharp rise in prices in September during the holy month of Ramadan.
Investment Dar to Sell Cham Bank June 3, 2008
Posted by mylastresort in analysis.Tags: banking, Central Bank, Cham Bank, Commercial Bank of Kuwait, investment, Investment Dar, Syria
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As previously reported as a rumor but now confirmed, Investment Dar has agreed with Commercial Bank of Kuwait (CBK) to sell its 12.5% stake in Syrian lender Cham Bank for $7 million. The deal was done but still pending approval by the Central Banks of Kuwait and Syria.
Interesting Notes from previous posts:
- In the previous unsourced statement Dar Investment was was said to gain KD 2 million on the sale
- Commercial bank of Kuwait showed intent of raising its stake in Cham bank to 30% from 10%
- CBK has raised its stake to 27%, this year, buy purchasing shares from Syrian & Kuwaiti investors
Gulf Bank wins best bank in Kuwait June 3, 2008
Posted by mylastresort in analysis, random.Tags: Award, banking, Bassam AlGhanim, Best bank, Global Finance, Gulf Bank, kuwait, Ranking
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The annual report on “Best Emerging Market Banks in the Middle East” by Global Finance has named Gulf Bank as the Best Bank in Kuwait.
The criteria for selecting Gulf Bank as the winner in Kuwait included:
- Growth in assets
- Profitability
- Strategic partnerships
- Customer services
- Competitive pricing
- Innovative products
“An international award like this provides global recognition for the quality of the services we deliver and the way that Gulf Bank is a leader in the financial services sector in Kuwait. We are very proud to be identified as a leader in the emerging markets that are increasingly important to the growth and continued prosperity of the global economy”- Bassam Y Alghanim, Chairman and Managing Director
The Awards Gulf bank has received from Global Finance include:
- Best Bank in Kuwait (2007)
- Best Consumer Internet Bank in Kuwait (2007)
- Best Foreign Exchange Bank in Kuwait (early 2008)
Comparisson of KFH expansion to others May 29, 2008
Posted by mylastresort in analysis.Tags: al-Tijari, banking, CBK, Commercial Bank of Kuwait, Competition, Expansion, KFH, Kuwait Finance House
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Kuwait Finance House (KFH) said it plans to add more branches this year. The bank plans to have 50 branches in Kuwait, 113 in Turkey and the rest in Bahrain and Malaysia by year-end. In all, it plans 175 branches by December 31. The bank currently operates 42 branches in Kuwait. The expansion plan is always beneficial to banks as long as they do not pursue the same strategy as Commercial Bank of Kuwait (CBK). al-Tijari has the reputation of having branches EVERYWHERE except for one problem, the company expanded quicker than the employees hiring and training, thus creating a rift between branches and employees. I have on numerous occasions been to branches with two employees and a tea boy! Just for the sake of quantity over quality… The lack of employee awareness and professionalism when working with customers needs to be trained and enhanced in order for banks to be competitive in the Gulf. As the competition grows fierce and the market saturates, greater influence needs to be placed on customer service and employee retention since these are the only two factors that are nonexistent in the Gulf region.
Fitch rating on Saudi banking sector May 20, 2008
Posted by mylastresort in analysis, saudi arabia.Tags: banking, Fitch, investment, Outlook, Saudi, saudi arabia, Sector
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Fitch ratings has just released a special report detailing the Saudi banking sector outlook in 2008. It states that the Saudi banking boom briefly stalled in 2007 due to lower sector profitability. Future outlook for the sector remains promising due to expanding private sector credit volumes and sustainable revenue growth.
Some interesting facts:
- Economic risk remains moderate
- Rising inflation could have negative implications on consumer spending, private sector investment, asset growth, loan repayments
- Sector challenges include the Saudi Arabian Monetary Agency’s restrictions on consumer loans and the increasing competition from foreign entrants
- Saudi banks are delaying new debt issues, this has not caused any funding pressure
- Higher cost of funding and pressure on margins are major concerns
Blacklisted by my bank for living in Iran May 8, 2008
Posted by mylastresort in analysis, random.Tags: banking, Banque Bruxelles Lambert, Black list, European Union, ING, Iran, Islamic republic, Nuclear, Oil, Sanctions, Tehran, West
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I came across this very interesting article. It ties together politics and banking. The original article came across Reuters News service, I could not find a link.
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By Fredrik Dahl
TEHRAN, May 8 (Reuters) – “Your account has been blocked because of your address … It’s not personal.”
The bank employee in Brussels sounded almost apologetic when she told me my business was no longer wanted since I live in Iran, which is under tightening U.N. and U.S. sanctions over its disputed nuclear plans.
(more…)
JP Morgan buying stake in KFH April 20, 2008
Posted by mylastresort in analysis.Tags: Arab, banking, investment, Islamic, JP Morgan, JPM, KFH. Kuwait FInance House, kuwait
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Rumors JP Morgan are interested in buying a stake in Kuwaiti Islamic lender Kuwait Finance House have surfaced. Shares have not been effected. KFH has gained 6.29% this month and 26.7% this year up to last weeks closing price.
Kuwait welcomes a Al-Rajhi bank March 25, 2008
Posted by mylastresort in saudi arabia.Tags: Al-Rajhi Bank, banking, Banks, Central Bank, FDI, First Saudi Bank, Foreign banks, investment, Islamic bank, kuwait, Kuwaiti, Number of, Sharia Compliant, total number of banks in
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The Central Bank of Kuwait (CBK) announced that it had granted Al-Rajhi Bank an initial license to open a single branch in the state.
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Al-Rajhi is Saudi Arabia’s leading bank
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First Saudi bank to open in Kuwait
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Operates under sharia law
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Fourth Gulf bank to obtain a permit in Kuwait
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Seventh foreign bank to obtain a permit
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Sixteenth bank to open in Kuwait
