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Wednesday, 21 September 2016

GCC loan growth projected to decline to 6% in 2016 | GulfNews.com

GCC loan growth projected to decline to 6% in 2016 | GulfNews.com:

"GCC's banking sector is expected face continued slowdown in growth, deterioration of asset quality, and reduced profitability in 2016, according to rating agency Standard & Poor’s.
“Lower economic growth means fewer growth opportunities for banks in the GCC. We expect loan growth in the region will reach around 6 per cent on average in 2016 compared with around 10 per cent in 2015. We think this slowdown will persist in 2017, with growth stabilizing at around 5 per cent,” Mohammad Damak, S&P Global ratings analyst
Lower oil prices mean lower liquidity, as deposits from governments and their related entities account for between 20 per cent and 40 per cent of the deposit base of GCC banks, and this inflow of money depends heavily on oil prices."



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