Daily Traders Edge

Gulf banks under pressure from low oil prices: Moody’s

February 22
11:01 2016

Banks in the six-nation Gulf Cooperation Council (GCC) are being increasingly challenged by a liquidity squeeze resulting from low oil prices, Moody's Investor Services said on Monday. A sustained loss in oil revenue is likely to reduce government and government-related deposits in banks and could eventually reduce state support for the banking system, the ratings agency said. Government willingness and capacity to support GCC banks has played a key role in sustaining their credit growth, asset quality and loss-absorbing buffers, it said.

Related Articles

Newsletter Signup

Sign up for our free newsletter