Fitch: GCC Banks Have Ample Liquidity, Capital Buffers

Gulf economies could face their worst slump since the early 1990s if the Iran war drags on, with some forecasts warning of sharp contractions should disruptions to the Strait of Hormuz persist. Despite the broader economic risks, ratings agencies say the region's banking systems remain relatively resilient for now, supported by strong capital, liquidity buffers and the expectation of sovereign support. Redmond Ramsdale, Head of Middle East Bank Ratings and Islamic Banking at Fitch Ratings spoke to Bloomberg’s Horizons Middle East and Africa anchor Joumanna Bercetche about the resilience of GCC banks. (Source: Bloomberg)