Moody's: Qatari banks still stable

Moody's Investors Service said in a report that the credit outlook for rated Qatari banks remains stable, reflecting continued macroeconomic improvements, solid financial performance and expanding bank franchises.

The report also noted some significant credit and funding concentrations and the increasing level of competition.

"Not only has the operating environment for Qatar's banks remained strong, but the country's high level of prosperity also continues to offer new and better-quality banking opportunities. Qatari banks are also gradually developing and enhancing their franchises by expanding their product ranges - especially in retail and Islamic banking - and their operations overseas," said Constantinos Pittalis, a Moody's vice president-senior analyst and co-author of the report.

The agency said that the bank financial strength ratings additionally incorporate the fact that Qatar's domestic economy is dominated by a relatively small number of major corporate groups and government-related entities, leading to funding and credit concentrations for the banking system as a whole.

© 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.