| October 13, 2026
According to MENA , data from the Central Bank of Kuwait reveals that commercial banks’ deposits held at the central bank fell from KWD 4.8 billion at the end of 2025 to KWD 2.4 billion in September 2026, a 50% decline in just nine months.
What Is Happening in Kuwait?
▪️ The impact of the war with Iran: Economic disruptions have prompted the Central Bank of Kuwait to ease liquidity requirements from 100% to 80%, allowing banks to release more funds for lending.
▪️ A domestic crisis of confidence: The widespread campaign of citizenship revocations and restrictions on access to certain assets have raised serious questions about public confidence in Kuwait’s financial environment.
Is Kuwait Heading Toward a Banking Crisis?
The figures deserve close attention, but they do not mean that citizens have withdrawn half their savings. The decline concerns commercial banks’ funds held at the central bank, while official data indicates that residents’ deposits have actually increased.
The bigger question is: How long can Kuwait’s banking sector withstand the economic pressures of war, and what will prolonged regional instability mean for the country’s financial stability?