THE IMPLICATIONS OF FINANCIAL REGULATION FOR KUWAIT'S FINANCIAL SECTOR

Financial services are significant to a country's economy and embody a broad area of economic activities internationally. It can be argued that the protection of the financial industry is one of the core responsibilities and functions of a developed country. However, financial institutions in Kuwait do not assess the effectiveness of their own services against other institutions around the world. This poses a problem given that the stability of Kuwait's financial system is directly associated to the development of financial customer services and protective measures for investors. The primary objective of regulation is to have a general and integrated financial supervisory authority responsible for the conduct of prudent financial activities. The regulatory authority power relies on focused decision-making according to specific risks for each financial institution. The disclosure, reliability and transparency requirements are also essential factors that will complement the delivery of proficient financial services.