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GCC credit growth to slow by 5 percent

09 May 2016

(MENAFN) Credit growth in the GCC is predicted to slow to 5 percent, as the quality of loan growth and lending standards degrades.

However, credit growth viewed slowing due to slower non-oil GDP growth, with a market slowdown in deposit growth.

Additionally, some of that loan growth is stemming from increasing working capital needs, rather than an improvement in business sentiment.

Moreover, it was suggested a reduced willingness to extend business loans amid financial institutions, with changes in credit standards.

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