Moody's affirms Qatari banks mitigated risks of unexpected shocks

Doha, Qatar: Moody s, a global credit rating agency, praised the resilience of Qatari banks, highlighting their growth and strong capital of Qatari ba...

Doha, Qatar: Moody's, a global credit rating agency, praised the resilience of Qatari banks, highlighting their growth and strong capital of Qatari banks, and their ability to face challenges.

This came in a recent report where it stated that banks in Qatar have strong liquidity coverage ratios, in addition to their ability to attract financial inflows through diverse deposits.

The report added that Qatari banks were primarily financed during the recent period through customer deposits, which accounted for approximately 52% of total assets by the end of June 2024; while adding that the deposits from government and government-owned entities were estimated at about 36% of total deposits in the same period. 

Moody's also praised the success of Qatari banks in developing and attracting deposits from the domestic private sector while also building on foreign and international deposits.

It further highlighted the growth witnessed by the credit sector, which is in line with the country's economic growth trajectory, specifically credit directed to the private sector, which is expected to grow significantly during the current year. In this context, Moody's forecasts that private sector credit growth during the current year will range between 3% and 4%.