Falling Oil Prices and Kuwait Banking System

January 2017 | 5 pages | ID: F66A66ED432EN
Sadia Saeed

Abstracts

The prices of the oil have been declining sharply after the mid of 2014 because of the slow global economic growth. Kuwait is an oil dependent country that depends mainly on the oil income and the lowering of the oil prices affect the government reserves and other economic indicators of the Kuwait. The main reason of lowering the oil prices is the increase in supply of the oil but the decrease in the demand of the oil due to slow economic growth of the world. The decrease in the oil prices affect the banking sector of the Kuwait but the powerful position of the banking sector of the Kuwait have nullify this influence of the oil prices on the banking sector as the banking sector of the Kuwait have strong capital adequacy ratio, strong credit rating etc. So the oil prices currently affecting all over the world but the banking sector of the Kuwait support the economy of the Kuwait. Cont... (1250 words of this report)

Contents

Introduction
Main Reasons
Depreciation of Yen
Looming concerns about deflation has prompted the ECB to launch its 60 billion euro a month bond purchase stimulus
Prices of the oil decline with the appreciation of the US dollars
Negative correlation among the oil prices and US dollar
Oil prices and banking sector of the Kuwait
Conclusion
References