Qatari banks need to depend less on deposits and issue more debt and Islamic bonds to raise capital if they are to continue fuelling the country's breakneck expansion without encountering future problems, an executive at Standard & Poor's said.
Loan growth in the Gulf Arab state, which posted a 14.1 percent increase in GDP last year, stood at 28 percent in 2011, according to a new report from the ratings agency on the state of the Gulf Cooperation Council (GCC) banking sector.
Slower deposit growth however meant that Qatari banks would need other sources, such as bonds and sukuk, to maintain credit growth and avoid funding problems in future, said Timucin Engin, associate director, financial institutions, at S&P.
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