Wednesday 8 April 2015

Oil crisis casts shadow over Gulf banks |GulfNews.com

Oil crisis casts shadow over Gulf banks |GulfNews.com:



"Lower oil prices are set to end a run of bumper earnings for banks in the Gulf, one of a number of headwinds as lenders report first quarter results.



While the steep fall in oil prices is a concern to banks, a more immediate impact may be felt from retail banking rules, bad loan worries and property sector weakness.



Lower oil revenues have yet to lead to a significant drying up of liquidity. Banks remain exposed if oil prices remain under pressure in the medium-term as deposits from the government, quasi-government bodies and national oil companies provide around 10 per cent to 35 per cent of their non-equity funding, according to Moody’s Investors Service."



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