Eurobond activity in Qatar banking sector seen to pick up in 2016

25 Oct 2015

(MENAFN) Eurobond activity in the Qatar’s banking sector is ought to pick up next year due to the slowdown in government-related deposits and ongoing healthy credit growth, according to a study.

Supply risk has been contained as Qatari banks have not issued any new paper during the past two years, which is in “stark” contrast to their UAE peers, which have dominated most of the primary market in the GCC (Gulf Cooperation Council), a Commerzbank study said.

“This trend is about to change though, as the slowdown in government-related deposits will weaken liquidity conditions and this, combined with expectations of an ongoing healthy credit growth rate, will increase the need for new debt,” it said.

Finding that the new Basel III regulations will also increase the pressure on capital buffers and “we expect Qatari banks to start issuing Basel III compliant securities in order to comply with these higher requirements.”

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