Arab Today, arab today moody\s forecasts subdued bank lending in uae
Last Updated : GMT 05:38:17
Arab Today, arab today
Arab Today, arab today

Moody\'s forecasts subdued bank lending in UAE

Arab Today, arab today

Arab Today, arab today Moody\'s forecasts subdued bank lending in UAE

Dubai - Arabstoday

Moody\'s Investors Service said it is maintaining its negative outlook on the UAE\'s banking system because of ongoing trends of corporate deleveraging, asset quality challenges and subdued profitability. The negative outlook reflects the rating agency\'s expectations for the fundamental credit conditions in the banking system over the next 12-18 months, Moody\'s said in a new report. Overall, the rating agency said it expects bank lending growth to remain subdued over the remainder of 2011 at around 3-5 percent, compared with 25 percent in pre-crisis times. Among Abu Dhabi banks, Moody\'s said it expects stronger economic growth to generate higher lending growth compared with Dubai banks. \"Moody\'s negative outlook on the UAE banking system is mainly driven by the legacy asset quality challenges related to the ongoing restructuring of some large government-related borrowers,\" said Khalid Howladar, senior credit officer at Moody\'s Dubai office. \"Limited transparency, sizeable related-party exposures and high loan and deposit concentrations will also continue to render many UAE banks vulnerable to name-specific risks,\" he added. Moody\'s added that it believed the UAE\'s dependence on oil revenues and core sectors of trade, services, global logistics and tourism could render the local economy \"more sensitive to global risk scenarios of weakened growth and recession\". While it saw government spending continuing to benefit banks over the outlook horizon, particularly in Abu Dhabi, it added that real estate oversupply and weaker business confidence will dampen the speed of recovery in Dubai. \"The orderly conclusion in June 2011 of the $25bn Dubai World corporate debt restructuring has been a critical step forward for banks\' asset quality and the economy,\" said Howladar. He added that there remained some uncertainty surrounding the ongoing restructuring discussions about the $10bn distressed debt of Dubai Holding entities. The rating agency said it expects work-outs of large distressed government-related issuer (GRI) exposures to continue pushing up system-wide non-performing loans, which are likely to peak at around 13-15 percent in Dubai next year and around 8-10 percent in Abu Dhabi this year. Moody\'s view of bank asset quality also incorporates the depressed state of the real estate sector, Howladar said. On the positive side, Moody\'s said UAE banks have increased their capital over the past two years while shareholder\'s equity is also relatively high on a global basis. Moody\'s also said it considers UAE banks\' liquidity metrics to have significantly improved. Although profitability is recovering, it remains constrained by cautious loan growth and the ongoing provisioning that is required to cover problem loans, the Moody\'s report added.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today moody\s forecasts subdued bank lending in uae Arab Today, arab today moody\s forecasts subdued bank lending in uae

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today moody\s forecasts subdued bank lending in uae Arab Today, arab today moody\s forecasts subdued bank lending in uae

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday