Kuwaiti banks not selling collateral assets

Kuwaiti banks are not liquidating assets held as collateral against customers loans and are not pressured to do so, the head of Kuwait's banking association said on Monday.

"There is no pressure on (local banks) by the central bank to liquidate those mortgaged (assets)," Abdulmajeed al-Shatti, head of the Kuwaiti Banking Association was quoted by state news agency KUNA as saying.

"The association is affirming the cooperation of the local banks with their cooperating customers and the keenness to reschedule the debt of customers according to each case," said Shatti, who is also chairman of Commercial Bank of Kuwait.

In December, the central bank said Kuwaiti banks will still face penalties if they liquidate stocks held as collateral against customer loans.

Banks could only liquidate mortgaged stocks on orders from the customer or if a debtor was not cooperating with lenders, the central bank said then.