ABSTRACT
Commercial banks of the Gulf area obtained rupees through the sale of sterling to the Reserve Bank of India. The Kuwait Currency Board operated according to the norms and practices of banking in the United Kingdom. The core purpose of the Central Bank is to ensure the stability of the currency by regulation of credit and supervision of the banking system. The first bank to begin operations in Kuwait was the British Bank of the Middle East which opened in Kuwait in 1941 and was given a thirty-year concession during which time no other foreign bank was allowed to operate in Kuwait. The government concern with the welfare of lower-income groups is manifested in the financial sector by the fully government-owned Credit and Savings Bank. Private Kuwaiti capital has been flowing back to Kuwaiti banks after the international monetary crisis. External entrepreneurial influence is perhaps most predominant in the banking industry.
