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FINANCIAL NEWS
GCC’s loan growth to fall in 2017
18 Feb 2017
(MENAFN) According to rating agency Standard & Poor”s, Asset growth of GCC banking sector lost thrust last year and the overall loan growth is expected to decline further in 2017.
Suha Urgan, banking sector analyst at S&P said: “In 2017-2018, we expect this situation to continue as the government”s policy response to lower oil prices continues to take the form of spending cuts and the postponement of infrastructure projects. Under our base-case scenario, we expect private sector lending growth to reach 5 per cent to 7 per cent on average for the banking systems of the six GCC countries for 2017-2018.”
And added: “We foresee further deterioration in 2017-2018 and the downward trend to last for at least two years, barring any unexpected increase in hydrocarbons prices.”
However, Growth in lending to the private sector halved to 5 per cent on average last year, compared with 10 per cent in 2015.
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MENAFN1802201700450000ID1095252217
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