Moody's: stable view for Qatar banks

In a report about Qatar's banking system, Moody's Investor Service said the stable outlook for Qatar's rated banks reflects strong macro-economic conditions, solid financial metrics and improving bank franchises.

However, the agency said that credit and funding concentrations, increased competition and potential credit risk are areas of concern.

The country's strong operating environment and high level of prosperity have brought new and better quality banking opportunities, Moody's said. The banks are gradually developing and enhancing their franchises by expanding product ranges - especially in retail and Islamic banking - and via geographical diversification.

At the same time, Moody's said its ratings also incorporate the banks' significant funding and credit concentrations, growing competition from newly established and foreign banks and concerns about potential deterioration in asset quality following aggressive loan growth.

The three Quatar bank's rated by Moody's includes Commercial Bank of Qatar, Qatar National Bank and Doha Bank.

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