Wednesday 4 July 2012

Gulf banks flex new muscle - The National

Banks in the Arabian Gulf are expected to compete harder for market share in booming emerging economies as their financial strength increases relative to that of humbled global banks, according to the ratings agency Standard & Poor's.

As European lenders find their ability to provide finance sapped by the effects of the euro-zone debt crisis, many Gulf banks will find opportunities to expand their international reach into new territories, said Fevzi Timucin Engin, a financial analyst at S&P.

"Developed market banks have been piling up quite a few assets in the emerging-market space," he said. "Now they're finding with their own capitalisation issues and negative operating environments at home, they have a need to find additional liquidity."

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