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Kuwait
The Role of Banks in Kuwait
27.01.2021Banks are defined as "institutions whose primary function is to accept deposits for use in banking operations, such as providing loans and advances, issuing and collecting cheques, trading in foreign currencies and precious metals, and the other credit operations".
Banks are divided into two types, conventional banks and Islamic banks, and while both of types provide a wide range of banking services, the main difference between them is that Islamic banks take into account that their business does not involve anything contrary to the rules and regulations of Islamic Sharia, by relying on Sharia-compliance contracting forms such as Murabaha, Musharaka and Mudaraba. To ensure that their actions comply with the rules and regulations of Islamic Sharia, they form Sharia supervisory bodies.