Moodys warns of risk for Gulf banks

Moody’s has warned of systematic risk in the Banking sector in the Gulf. The rating agency points to rapid loan growth (25% on average for fourth year running) and possible asset bubble. Moody’s remain reluctant to award any upgrade due to the high exposure of the Banks in the Gulf both directly and indirectly to overvalued property and local capital markets.
Moody’s added that many of the Banks were not able to quantify the risk in their consumer and corporate loan portfolios.