06 Jul 2012
(MENAFN) Standard and Poor’s (S&P) said that for the rest of the current year and throughout 2013, banks in the GCC will not be affected directly by the euro zone debt crisis, reported Arabian Business.
S&P said that in spite of the unfavorable conditions in the euro region and the global banking markets, Gulf banks will continue to report further recovery in their net profits as their net funding reliance on European banks, and external funding generally, is largely limited and manageable.
The rating agency added that asset quality is improving, thus, banks in the GCC are not required to reserve provisions to cover their loan losses.
It is worth noting that GCC members, excluding Bahrain, have stayed largely protected from the effects of the political instability in other parts of the Middle East and North Africa (MENA) region.
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