Bahraini Banks to Remain under Pressure: Moody’s
2018-12-07 - 8:46 p
Bahrain Mirror: Moody's expected that Bahrain banks would remain high pressures due to economic factors.
The outlook for Gulf Cooperation Council (GCC) banking systems remains stable, reflecting their improving operating conditions, weakening but still solid loan performance and strong capital, Moody's Investors Service said in a report.
A return to rising oil production after production cuts in 2017-2018 will drive real GDP growth next year to an average of around 3.3%, from 1% in 2017.
Credit growth will recover as government spending underpins economic activity and spurs private-sector growth.
Banks in Kuwait, UAE, Qatar and Saudi Arabia will remain resilient, while fiscal pressures will weigh on banks in Oman and Bahrain, where oil prices will remain below the fiscal breakeven level.