A GCC market trading hall
Consolidation among GCC banks may gain momentum if lower oil prices add to competitive pressure in the region, Fitch Ratings said in a recent report.
Sustained lower oil prices and weaker global demand may put pressure on GCC bank operating environments, leading to weaker profitability and acting as a catalyst for MA as banks seek to diversify their revenues and increase scale. Smaller banks may become targets due to their weaker franchises, and often higher funding costs and thinner capital buffers.
A GCC market trading hall
Consolidation among GCC banks may gain momentum if lower oil prices add to competitive pressure in the region, Fitch Ratings said in a recent report.
Sustained lower oil prices and weaker global demand may put pressure on GCC bank operating environments, leading to weaker profitability and acting as a catalyst for MA as banks seek to diversify their revenues and increase scale. Smaller banks may become targets due to their weaker franchises, and often higher funding costs and thinner capital buffers.
