Kuwaiti banks are not affected by the global credit crisis, the country's central bank governor said in remarks published on Tuesday.

"The Kuwaiti financial institutions are enjoying an excellent financial coverage and don't suffer at all from financial crises like what happens now in several countries as a result of the current crisis sweeping the world, be it in the United States, Europe and Asia," daily Al-Watan quoted Sheikh Salem Abdul-Aziz Al-Sabah as saying.

Sheikh Salem, who is currently on a trip abroad, said local lenders were capable of dealing with the situation, adding that he would not have gone abroad if there had been any problem with Kuwaiti banks.

The comments of the usually media-shy central bank governor came shortly after he had rejected in strong words what he called market rumours that two Kuwaiti banks had sought protection from the central bank after a bourse slide.

In addition, the cabinet sought to assure investors in a statement after a weekly meeting on Monday that Kuwaiti banks were safe from the fallout of a global credit crunch.

The cabinet said the central bank was ready to ensure local banks have sufficient liquidity if needed.

The move came after bankers told Reuters the central bank had again injected into cash into the banking sector to shore up confidence in the world's seventh-largest oil exporter.- Reuters