Qatari banks 'facing risks'
London, April 22, 2008
Qatari banks are strong but exposed to a real estate shock and economic downturn, said Standard & Poor's Ratings Services in a report published on Monday.
"In Bank Industry Risk Analysis: Qatar," Standard & Poor's ranks the Qatari banking system in Group 5 of its global Banking Industry Country Risk Assessment.
"This classification reflects the system's stellar financial performance, solid capitalisation, and ample liquidity," said Standard & Poor's credit analyst Mohamed Damak.
"These positive factors are partially counterbalanced by the narrowness of the country's economy and the system's increasing vulnerability to a real estate sector shock - exacerbated by the rapid and untested credit expansion."