Kuwait's banks have not been affected by a financial crisis in the United States, the central bank governor said in remarks published on Sunday.

'Local banks have not been, and will not be, affected' by the crisis, Al-Anbaa quoted Central Bank governor Sheikh Salem Abdul-Aziz Al-Sabah as saying.

He said that the passing of a $700 billion Wall Street bailout bill by the US House of Representatives would have a positive impact on US and Arab markets, including Kuwait's bourse.

Al-Rai newspaper said in an unsourced report the central bank had injected almost KD100 million ($374.3 million) into the banking system, and also intended to sell bonds worth KD50 million.

Bankers told Reuters on Monday the central bank had offered short-term funds to boost liquidity to shore up confidence in its financial institutions.

The central bank has said it was ready to add liquidity if necessary despite worries about rising inflation in the Opec producer.

'They offer 1-week, 1-month and overnight funds,' one banker told Reuters. A second banker confirmed offers by the central bank but had no details.

The central bank could not be immediately reached for comment-Reuters