After the Central Bank of Kuwait asked local banks to determine their exposure to Credit Suisse, in terms of financing or investment, if any, informed sources confirmed to Al-Rai that government assets, whether affiliated with the General Investment Authority or the Public Institution for Insurance, are not a candidate for cracking, even if a giant collapses. Swiss banks are one of the most important banks in the world.
The sources indicated that the bulk of the relationship of government institutions investing globally with Credit Suisse does not exceed the advisory relationship regarding some investments and mergers. As for the investment aspect of these entities, it is directed more towards American banks such as Bank of America, Morgan Stanley and other international banks. grand.
The sources pointed out that there are likely no deposits for the Investment Authority or the Insurances with Credit Suisse, explaining that the interest in Swiss banks during the past years and the adoption of what is known as zero and negative interest prompted the officials of the two Kuwaiti institutions to switch to Banks that pay returns on their money, with a large portion of the dollar liquidity directed to Kuwaiti banks.
She claimed that in the case of “insurances,” the institution decreased its liquidity levels in the last five years from 42 percent to 3 percent, with the resulting amounts directed to investment, meaning a decrease in the weight of deposits initially with it, taking into account that all financial disputes related to the former general manager of The Foundation, Fahd Al-Rajaan, are connected to Switzerland, which motivated officials to stay away from this market as much as possible.
According to the sources, Credit Suisse is not listed with either party on the list of top portfolio managers for the shares of the “Investment Authority” and “insurances” that can be managed through it.
Deposits for “investment” and “insurance” are secure, even if Credit Suisse fails.
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