Search Results

You are looking at 1 - 3 of 3 items for :

  • "C. bank assets quality" x
Clear All
Abdullah Al-Hassan, Imen Benmohamed, Aidyn Bibolov, Giovanni Ugazio, and Ms. Tian Zhang

Banking Sector C. Bank Assets Quality and Macroeconomic Environment 4. Policy Priorities Annex 1. Source Data for Balance Sheet Analysis and Credit Cycle Analysis Annex 2. Balance Sheet Exposures, end-2020 Annex 3. Determinants of Banks’ Holding of Government Securities: Econometric Analysis Annex 4. Monetary and Financial Measures to Mitigate Pandemic Efect References FIGURES Figure 1. Commercial Bank Assets Figure 2. Gross Cross-sectoral Balance Sheet Exposures in GCC Countries Figure 3. Balance Sheet Linkages Figure 4. Exposure in Foreign

Abdullah Al-Hassan, Imen Benmohamed, Aidyn Bibolov, Giovanni Ugazio, and Ms. Tian Zhang
The Gulf Cooperation Council region faced a significant economic toll from the COVID-19 pandemic and oil price shocks in 2020. Policymakers responded to the pandemic with decisive and broad measures to support households and businesses and mitigate the long-term impact on the economy. Financial vulnerabilities have been generally contained, reflecting ongoing policy support and the rebound in economic activity and oil prices, as well as banks entering the COVID-19 crisis with strong capital, liquidity, and profitability. The banking systems remained well-capitalized, but profitability and asset quality were adversely affected. Ongoing COVID-19 policy support could also obscure deterioration in asset quality. Policymakers need to continue to strike a balance between supporting recovery and mitigating risks to financial stability, including ensuring that banks’ buffers are adequate to withstand prolonged pandemic and withdrawal of COVID-related policy support measures. Addressing data gaps would help policymakers to further assess vulnerabilities and mitigate sectoral risks.
Abdullah Al-Hassan, Imen Benmohamed, Aidyn Bibolov, Giovanni Ugazio, and Ms. Tian Zhang

data are collected through public information and country desks and may not be comprehensive. C. Bank Assets Quality and Macroeconomic Environment Weaker economic activity and lower oil prices can lead to a deterioration in asset quality and lower capital buffers in GCC banks. With about 16 percent of loan portfolios in trade and services sectors, asset quality in the banking systems is particularly sensitive to the pandemic ( Figure 19 ). Also, once policy support policies are withdrawn, a delayed rise in NPLs could be observed especially in high contact