Banking sources told Al-Rai that Kuwaiti banks are witnessing notable stability in liquidity conditions and strong confidence in the resilience of the local banking system, despite regional tensions arising from the conflict between the US and Israel on one side and Iran on the other.

Sources highlighted that ATM liquidity supply has consistently exceeded actual cash demand from customers, reflecting stability in withdrawal patterns.

The sources explained that banking monitoring of liquidity, compared to pre-war averages before February 28, showed that ATM withdrawals averaged between KD 150 and 200 per transaction, while deposit figures remained similarly stable in volume and value. Any initial increase in cash demand at the start of the conflict was limited and did not signal concern.

They added that cash demand later declined to below-average levels on certain days, across all withdrawal channels including ATMs, bank branches, and electronic transfers, while deposit indicators remained at normal levels, covering all maturities for both individual and corporate clients.

Transfers through all banking outlets, including digital channels, continued without restrictions or disruptions.

In line with Central Bank of Kuwait directives, banks increased ATM liquidity to meet any unusual cash requests driven by psychological concerns, yet this additional liquidity was not exhausted. Monitoring confirmed stable withdrawals, reduced discretionary spending outside essential goods, and near cessation of tourism-related travel, reflecting customer stability.

The sources affirmed that Kuwait’s banking system ranks among the most trusted globally, supported by the Deposit Guarantee Law, which ensures customer funds are fully protected.

Customer inquiries remained routine, and the Central Bank continues to monitor liquidity, ready to provide additional cash if required, indicating overall stability of liquidity since the onset of the conflict.