GCC and Levant banks warned against complacency on capital requirements ahead of Basel III | The National

GCC and Levant banks warned against complacency on capital requirements ahead of Basel III | The National:



"GCC and Levant banks could face massive capital shortfalls because of tighter capital requirements if they do not manage their books more astutely, according to Booz & Company.



Despite a turnaround for banks in countries including the UAE in 2013 amid lower non-performing loans and provisions for bad debt, Booz warned that the banking industry in the GCC should not become complacent.



In a study of 64 GCC and Levant banks, the consultancy found that banks by 2017 could have a capital shortfall of US$27 billion in the worst-case scenario and $12bn in the best case. Such a deficit, which stood at about $11bn in 2012, would seriously hinder the banks’ growth prospects, Booz said."



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