Banks in Gulf oil producers are pushing ahead with a drive to build up loan loss provisions in the wake of the 2008 global fiscal distress and regional debt default problems, with those of key banks soaring by 59 per cent in the fourth quarter over the previous quarter, according to a Kuwaiti bank.
Provisions by the 22 banks covered in the report by Global Investment House (GIH) about the banking sector in the six-nation Gulf Cooperation Council (GCC) also jumped by around 51 per cent year-on-year.
Saudi Arabia was the only country whose banks recorded a decline in provisions YoY while Kuwait and the UAE accounted for the bulk of Q4 provisions.
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