The $26 Billion Reason Why Qatari Banks Are Enduring the Embargo - Bloomberg

The $26 Billion Reason Why Qatari Banks Are Enduring the Embargo - Bloomberg:

"Qatari banks have fared surprisingly well since four Arab nations started a boycott a year ago.

It’s thanks to the government and state-owned companies, which increased deposits by about $26 billion since May 2017, making up for a flight of capital after a Saudi-led group of nations cut commercial links with the country. That helped buoy an industry where foreign deposits accounted for about 25 percent.

“The biggest worry was how banks would manage their deposits with funds being withdrawn from the boycotting countries, but the government has bailed them out to a great extent,” Chiro Ghosh, an analyst at SICO BSC, in Bahrain said by phone. “The government has also maintained spending so the lending book has been fairly strong, with more than 60 percent of bank lending in the past year being to the public sector.” "



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