Moody's: Arab banks resilient

From Morocco to the Straits of Hormuz, Arab banks have been comparatively well insulated from the effects of the recent global financial disruption and ensuing recession, Moody's Investors Service said in a new report.

But, the region's banks continue to face challenges that vary dramatically from one sub-region to another, as reflected in the banks' different risk profiles, Moody's said.

The main reasons for the resilience of Arab banks to the crisis are the capacity among both conventional and Islamic banks to adapt to macro-economic adversity, minimal exposures to subprime-related asset classes and government support and sometimes intervention, the agency said.

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