Capitalisation at Gulf banks is one of the main strengths

Capitalisation continues to be a positive rating factor for banks in the Gulf Cooperation Council countries according to S&P. After completing its latest tally of their risk-adjusted capital ratios, based on their year-end 2016 financial the agency calculates an unweighted average ratio of 11.5 per cent for the Gulf banks.

RAC are forecast to remain relatively stable in the next 12-24 months. “This result underpins our strong or very strong assessments of capital and earnings for 72 per cent of the Gulf banks we rate,” said S&P credit analyst Mohamed Damak in a new report called ‘Capitalization At Gulf Banks Is One Of The Main Strengths Supporting Their Ratings.’

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