“Banks are not suicidal … So unless there is government intervention to backstop some of the losses, banks are going to sit on the side and watch who’s going to make it and who is not.”
-Kamel Alzarka, Chairman of the Falcon Group, comments on GCC banks, adding that sectors such as automotive, aviation, retail and manufacturing are all looking for liquidity, often after having drawn down revolving credit facilities with banks. Reuters reports that Gulf banks are limiting lending to minimize losses as interest rates plummet, loan growth stalls and large state projects look to be scaled back. [Reuters]
