Gulf banks are on average better capitalised than their global peers and look set to remain largely immune to the European crisis in the coming years, according to a report by Standard & Poor’s, the rating agency.
The 26 Gulf banks covered by the agency have risk-adjusted capital ratios – a measure of a bank’s ability to absorb risks – of 12-13 per cent, about 5 percentage points higher than the 100 largest global banks covered by S&P.
The strong capitalisation is thanks in part to high regulatory requirements, but also because of conservative management at the banks.
No comments:
Post a Comment