qatari banks merger to rebalance financial sector
Saturday 28 December 2024
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

Qatari banks merger to rebalance financial sector

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice Qatari banks merger to rebalance financial sector

The combined entity would be the largest Islamic bank in Qatar
Jeddah - Arab Today

A proposed merger between three Qatari banks — Masraf Al-Rayan, Barwa Bank and International Bank of Qatar — if successfully completed, would create the largest Islamic bank and second-largest bank in Qatar, and would result in a more balanced competitive environment in Qatar’s fragmented banking system, said a report issued by Moody’s Investors Service.
The merger is currently at due diligence stage and will be subject to approval by the relevant authorities and the three banks’ shareholders. The report notes that there would likely be considerable integration challenges with this merger.
“Currently in Qatar, 18 banks serve a population of only 2.6 million, and Qatar National Bank — the largest bank in the Gulf Cooperation Council (GCC) — dominates with a market share of more than 40 percent of domestic assets,” said Nitish Bhojnagarwala, assistant vice president at Moody’s.
“The merged entity between the three banks would help to rebalance the Qatari banking sector,” he said.
The report said that upon the successful completion of the merger, it would create an entity with total assets amounting to around QAR173 billion ($48 billion) and a market share of around 14 percent.
“The combined entity would be the largest Islamic bank in Qatar (ahead of Qatar Islamic Bank) and the fourth-largest Islamic bank in the Gulf Cooperation Council (GCC),” adds Bhojnagarwala.
Moody’s expects the enhanced franchise of the merged entity to benefit from the growth of Islamic assets in the GCC.
“Islamic banking asset growth has outpaced conventional banking in Qatar, as demonstrated by a 21 percent compound annual growth rate of loans for Islamic banks between 2011 and 2016 compared with 14 percent for the conventional banks,” explains Bhojnagarwala.
Moody’s expects, however, that there would be considerable integration challenges with this merger, which will be assessed in the event that the deal is agreed.
At that time, the rating agency will also assess how the structure and strategy of the merged entity could alter the group’s overall risk profile, both in terms of solvency (capital and profitability) and liquidity (liquid assets and access to funding).

Source: Arab News

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*

qatari banks merger to rebalance financial sector qatari banks merger to rebalance financial sector

 



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*

qatari banks merger to rebalance financial sector qatari banks merger to rebalance financial sector

 



GMT 10:31 2014 Tuesday ,23 December

Mirages of failure: Lebanon cannot wait

GMT 10:42 2017 Saturday ,14 October

Norway seeks 'Tesla tax' on electric cars

GMT 09:36 2017 Friday ,13 October

China urges US to 'preserve' Iran nuclear deal

GMT 14:41 2016 Friday ,07 October

Iranian President Arrives in Malaysia

GMT 09:20 2017 Tuesday ,12 September

Singer Miriam Clinci says she did not insult veil

GMT 23:11 2017 Wednesday ,18 October

Man jailed for filming worker in shower in Dubai

GMT 09:27 2018 Tuesday ,09 January

Prague's astronomical clock stops for six months

GMT 07:37 2016 Sunday ,29 May

WHO rejects calls to move Olympics

GMT 08:10 2017 Thursday ,23 November

Politicians, war criminals: 10 top figures

GMT 09:30 2017 Tuesday ,10 January

Iraq eyes recapture of east Mosul

GMT 10:09 2017 Monday ,27 November

Wafaa Amer reveals reason of "The Flood

GMT 06:04 2014 Wednesday ,05 November

Human insulin priority for health ministry

GMT 16:34 2017 Saturday ,18 March

Long before new hacks, US worried by Russian spying

GMT 10:21 2017 Friday ,19 May

Turkey seeks arrest of owner

GMT 06:42 2017 Wednesday ,03 May

Deputy premier meets Malaysian counterpart

GMT 05:44 2017 Thursday ,13 July

Bahrain-UK relations praised

GMT 12:41 2015 Thursday ,30 July

Experts guide farmers about pest control

GMT 17:27 2011 Tuesday ,29 November

Robots saved me and my daughter

GMT 13:18 2017 Saturday ,17 June

Trump rolls back parts of 'terrible'

GMT 08:53 2015 Monday ,06 July

Lancôme to release its Trésor Midnight Rose

GMT 11:09 2011 Saturday ,24 December

People are just jealous of me
Emiratesvoice, emirates voice
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice