Gulf banks under pressure from low oil prices: Moody's

The financial district in Dubai in GCC member country the United Arab EmiratesBanks in the six-nation Gulf Cooperation Council (GCC) are being increasingly challenged by a liquidity squeeze resulting from low oil prices, Moody’s Investor Services said on Monday. A sustained loss in oil revenue is likely to reduce government and government-related deposits in banks and could eventually reduce state support for the banking system, the ratings agency said. Government willingness and capacity to support GCC banks has played a key role in sustaining their credit growth, asset quality and loss-absorbing buffers, it said.

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