Bank of Kuwait and the Middle East (BKME) announced on Monday it would transform into an Islamic bank at the start of the second quarter of 2010.
The Kuwait-based bank has been granted full approval by local authorities, Chairman and Managing Director Hamad Al-Marzouq said in a statement.
The transformation was a strategic option for customers, especially the Public Institution for Social Security (PIFSS), he added, stressing that the bank would pursue the step according to its scheduled timeframe by the Central Bank of Kuwait.
Al-Marzouq explained that the Islamic bank sector was the least affected by the global financial downturn, and this proves that the choice made was a right one.
On preparations for the transition, he said that the bank had organized lengthy courses for staff of a Kuwaiti majority.
He also said that the bank had devised new products that conform to Islamic financial laws.
An Islamic financial consultant has been hired by the bank to aid the transition, it was also noted. - Kuna