Tuesday 26 June 2012

Gulf banks' capital expected to remain high, says S&P report - bi-me.com

Banks in the Gulf Cooperation Council (GCC) region have capitalization that generally exceeds their international peers', says Standard & Poor's Ratings Services in its report "Gulf Banks' Capital Positions Compare Well With Those Of Global Banks," published today.

Our risk-adjusted capital (RAC) framework, which we use to measure banks' capital adequacy, indicates that the average RAC ratio for GCC banks stood in the 12%-13% range as of end-December 2011--about 5 percentage points higher than the 7.4% average we projected for the 100 largest banks we rate in September 2011.

"We believe there are two primary factors underlying GCC banks strong capitalization metrics," says Standard & Poor's credit analyst Paul-Henri Pruvost.

No comments:

Post a Comment