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Sunday, 30 October 2016

Saudi banks face growing challenges from contracting and construction sector | GulfNews.com

Saudi banks face growing challenges from contracting and construction sector | GulfNews.com:

"Saudi banks faced with shrinking liquidity, rising cost of funds and pressure on profitability are expected to face deterioration in asset quality, according to banking sector analysts.
Rising challenges in the Saudi construction sector is expected to result in a spike in non-performing loans (NPLs) and higher provisioning costs for the country’s banks, according to rating agencies.
“The Saudi construction sector has been negatively affected over the last two years by slowing economic activity and fiscal consolidation measures, stemming from a lower oil prices environment. We expect the pressures to continue as the Saudi government aims to reduce its large fiscal deficit,” said Olivier Panis, a Vice President — Senior Credit Officer, at Moody’s.
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