Banks’ liquidity conditions likely to ease in 2017, but pressures to persist | GulfNews.com:
"Liquidity conditions in the GCC banking sector is gradually improving but pressures will continue to persist during 2017, despite some visible strengthening of oil prices following supply cut deals among oil producers, according to analysts.
Liquidity has stabilised but continues to apply pressure on GCC banks, and may still deteriorate in some markets. Due to falling oil revenue, government deposits in banks have either been shrinking or at least not growing as fast as in the recent past.
The main consequence of tighter liquidity can be seen in higher funding costs and lower loan growth. Customer deposits form the bulk of GCC bank funding. Interbank rates have gone up significantly in all GCC countries."
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