Sunday 7 June 2009

Qatari banks projected to face a challenging year

Qatari banks are expected to see their 2009 profitability challenged by slower loan growth, funding constraints and increasing impairment charges, Fitch Ratings said in a report.

"Asset quality remains the biggest issue facing Qatari banks in 2009. Fitch expects loan defaults to rise given the rapid growth in lending during the boom," said Robert Thursfield, Director, Fitch's Financial Institutions team.

Retail credit risks have also risen, as the sector remains over leveraged, but Fitch does not believe retail risks in Qatar are as high as in other GCC markets.

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