The Central Bank of Kuwait (CBK) gave the green light for the Bank of Kuwait and the Middle East to fully convert into an Islamic bank and for procedures to be taken according to the state's Corporate Law, the CBK said on Monday.
CBK Governor Sheikh Salem Abdelaziz Al-Sabah said, in a press statement, that the decision was taken by the board in a session last night and was based upon an initial approval of the conversion back in June 2008.
The said approval had required BKME to take appropriate action for the conversion process within a maximum of one year, and "the bank met the deadline," the governor said.
Among the required organizational and operation reform measures is for the bank to request issue of an Amiri Decree changing the name of the bank to "Ahli United Bank" and the stated areas of operation, according to article 135 of the Corporate Law.
This would be followed by the CBK crossing out BKME from the list of conventional banks operating in the State of Kuwait and registering the new name on the list of Shariah-compliant banks.
The new bank is only to operate after registration in the said CBK list. - Kuna