Moody's: Bahrain bank outlook negative

The outlook for Bahrain's banking system remains negative, reflecting expectations that challenging credit and business conditions will continue over the medium term, notwithstanding the modest rebound in the economy in 2010, said Moody's Investors Service.

These expectations are based on the continued weakness in Bahraini and regional real estate and the impact it is having on the rest of the economy, the agency said.

The negative outlook also is driven by ongoing franchise challenges at Bahraini-based wholesale lenders, as they try to refocus their business towards more profitable segments, Moody's said.

The outlook also reflects the more severe challenges at investment banks, which in many cases do not possess sufficient franchise depth to cope with the sharply lower private investment activity and depressed regional asset values, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.