Moody's says GCC banks outlook stable for next 18 months

07/12/2021 Argaam

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The outlook for Gulf Cooperation Council (GCC) banks for the next 12 to 18 months is stable, in light of the economic recovery in the region and higher oil prices, Moody's Investors Service said in a report published today, Dec. 7.

 

GCC banks hold strong buffers of liquid assets, which range between 25-30% of bank assets, said the ratings agency, adding that reserves will likely remain stable and provide a shield against unexpected shocks.

 

In addition, regulatory measures and large infrastructure projects will support credit growth in 2022, with demand for credit and private-sector lending being driven by construction of stadiums for the FIFA World Cup 2022 in Qatar, and by giga-projects in Saudi Arabia as part of its Vision 2030 program, Moody’s said.

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