Credit profiles of UAE-based banks are forecast to remain resilient despite an economic slowdown in the country driven by low oil prices although credit growth will be subdued, according to Moody’s Investors Service.
The agency has maintained its stable outlook on the UAE’s banking system, reflecting its expectation of resilient capital and liquidity buffers over the next 12 to 18 months.
“We expect UAE banks’ credit profiles to broadly remain resilient despite the economic slowdown driven by low oil prices, owing to their strong capital and liquidity buffers coupled with resilient profitability,” said Nitish Bhojnagarwala, assistant vice president at Moody’s. Details