Moderate reforms save GCC banks from global crisis

Gulf banks have been only slightly affected by the financial turmoil because of massive local investment opportunities during the boom period and the slow pace of reforms in the region, a key Saudi fund said yesterday.

Apart from losses by a handful of banks and other financial institutions in the six-nation Gulf Co-operation Council (GCC), the banking sector has remained relatively safe from the devastating repercussions of the crisis that has jolted giant banks worldwide, NCB Capital said in a study.

It noted that the number of GCC financial establishments that has been hit by the financial crisis has been limited, citing such institution as Kuwait's Gulf Finance House, which incurred the maximum loss of around $1.4 billion (Dh5.1bn) on a derivatives deal.