Gulf banks warned ‘no more bailouts’

Gulf finance leaders have warned the region’s banks not to expect any more government bailouts in the event of future financial catastrophes created by defaulting borrowers.

Lenders must learn lessons from the continuing fallout of the troubled Saad and Al Gosaibi groups by bearing the risks from loans extended to customers who may default, said Hamood Sangour al Zadjali, the executive president of the Oman central bank.

Mr al Zadjali made the comments following the annual meeting of GCC central bank governors in Abu Dhabi yesterday.