Fitch: Qatari Islamic banks' asset quality weakening; still better than conventional banks
Fitch Ratings-London-03 August 2020: Qatari Islamic banks' profitability will be hit by lower profit rates, lower business volumes, and higher financing impairment charges in 2020 as a result of lower oil prices and the coronavirus pandemic, Fitch Ratings says.
Asset quality will also weaken, but the true impact will be masked in the short term by financing deferral programmes and regulatory flexibility for banks to recognise impairments.
If economic disruptions persist, weaker asset quality and profitability will put pressure on currently adequate capital buffers.
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