Dubai PR Network, Online Press Release from Dubai and Middle East
 
Banking & Insurance(Banking & Investments)
Filter PR by
  
GCC Islamic Banks Stay On Course Through Glum Operating Conditions, Says S&P Global Ratings Report
 

•    We think GCC Islamic banks' financial profiles will continue to falter in 2017-2018. 
•    We foresee weaker growth prospects, higher cost of risk, and lower liquidity for GCC Islamic banks. 
•    Still, most of these banks have built sufficient capital buffers to weather the sluggish operating environment.

DUBAI (S&P Global Ratings) April 19, 2017--The weak economic environment will continue to dampen the financial performance of Islamic banks in Gulf Cooperation Council countries in 2017 and 2018, said S&P Global Ratings in a report published today, 'GCC Islamic Banks Stay On Course Through Glum Operating Conditions.' 

The end of the commodities super-cycle has sparked a fall in the economic growth and prospects of the Gulf Cooperation Council region, implying both lower growth opportunities and deteriorating liquidity for its conventional and Islamic banking systems. 
 
'We foresee further declines in GCC banks' asset quality and profitability indicators in 2017-2018,' said S&P Global Ratings Head of Islamic Finance Dr. Mohamed Damak. 'Still, we think that the banks have built sufficient buffers to make the overall impact on their financial profiles manageable.'
 
By global and regional standards, the Islamic banks in our sample continued to display strong asset quality indicators, profitability, and capitalization in 2016. We think that the current environment is creating an opportunity for the local regulators to start inching toward a more stringent application of Islamic finance's profit and loss sharing principle.

We have seen a few attempts in the industry to move in this direction, through the issuance of Tier 1 and Tier 2 sukuk with loss absorption at the point of nonviability (generally defined as a breach of the local regulatory capital ratios). We expect such issuance will continue, albeit slowly, over the next two years.

 

Posted by : Dubai PR Network Editorial Team
Viewed 2800 times
PR Category : Banking & Investments
Posted on : Wednesday, April 19, 2017  6:14:00 PM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : UBF Hosts Meeting with SWIFT's Regional Chief Executive to D...
Next Story : Mashreq Launches Quick Remit to Pakistan
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Wellbeing Medical Centre - ULTRAFORMER III Best and latest Anti-Ageing treatments [11547-Views]
Finally a Body that fits you! Cryolipolysis Fat Freeze [11072-Views]
Sandro Announces Expansion within The Middle East [10571-Views]
Middle East and African beauty and personal care market to grow to US$34.5 billion by 2021... [8833-Views]
Chlo eyewear introduces the new "Nola" sunglasses collection [8168-Views]
IKEA Introduces Limited Edition Art Event 2017' Contemporary Drawing Collection [8046-Views]
Introducing JOHNSON'S NEW Vita-Rich range with Cocoa Butter [8040-Views]
Dubai Design & Fashion Council Launches DDFC Membership to Support Sustainable Development... [7863-Views]
COÉGA Sunwear Teams Up With GO Sport on Exclusive SS17 Swimwear Collection [7716-Views]
Ulysse Nardin Marine Regattav [6777-Views]
Win up to 30 Kilos of Gold in 18 Days at Malabar Gold & Diamonds [6753-Views]
du Football Champions awarded Gold for its successful engagement of UAE youth [6576-Views]
Sheikh Khalid Al Qassimi Steers Peugeot 3008DKR to Victory [6460-Views]
Nautica Spring 2017 Collection [6399-Views]
Interstuhl launches VINTAGEis5 chair in the GCC [6344-Views]
Al-Futtaim Motors launches the UAE's first hybrid truck [6295-Views]
Paule Ka Launches New Fall/Winter 2017 Collection in Dubai [6259-Views]
World's first reinforced Arc7 class LNG carrier maiden port calls go smooth as ice, thanks... [5667-Views]
HP Inc. launches World's Most Advanced and Secure A3 Printers in the UAE [5527-Views]
H.H. Sheikh Ahmed lays foundation stone of Silicon Mall at Dubai Silicon Oasis [5502-Views]
Mövenpick Hotels & Resorts' Pakistan Presence Blooms as Firm Signs New Property in th... [5496-Views]
ESCADA Amelia - Diamond timepiece [5246-Views]
Denim Days with GUESS and F&F [5100-Views]
French Label ba&sh Launches Stunning Capsule Collection [5081-Views]
Dubai to welcome largest Arabian Travel Market yet [4990-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories