The Impact of Monetary Tools Used by the Central of Kuwaiti in Encouraging Investments by Commercial Banks

الصباح, نواف (2013) The Impact of Monetary Tools Used by the Central of Kuwaiti in Encouraging Investments by Commercial Banks. Masters thesis, جامعة الشرق الاوسط.

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Abstract

The purpose of this study is to identify the actions of the central bank when formulating monetary policy to encourage banks to support investment in accordance with the justification that govern these actions, and the statement of the impact of monetary policy represented discount rates determined by the Central Bank of Kuwait to encourage credit decisions and in establishing a monetary policy based on supporting investment, and to determine the impact of monetary policy on investment in various economic sectors. The population of the study in all bulletins issued by the Central Bank of Kuwait, which includes price rediscount and the size of credit facilities to sectors (trade, industry, construction), having been subjected financial reports published during the period (2000-2012) for the study and analysis in order to identify the impact of tools criticism used by the Central Bank of Kuwait in establishing monetary policy to encourage banks to support investment. م The study found the following results: − The existence of a relationship between the re-discount rate, which is one of the pillars of monetary policy instruments and the total cash credit facilities extended by local banks to Kuwaiti various economic sectors combined. − There is no relationship between the rediscount rate, which is one of the pillars of monetary policy instruments and the total credit facilities granted to the trade sector. − There is a relationship between the rediscount rate, which is one of the pillars of monetary policy instruments and the total credit facilities granted to the industrial sector. − There is a relationship between the rediscount rate, which is between the total credit facilities granted to the construction sector. The researcher recommends the following: − Work on the study of the reasons for the limited success of the policies of the Central Bank of Kuwait urged commercial banks to bank credit is sufficiently concrete. − Attention to select target economic sectors in monetary policy, as the economic sectors are affected in different ways to pursue monetary policy represented at the rediscount rate.

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