| A report by Moody's in October stated 29 percent of loans extended by Bahraini retail banks in the kingdom were real estate-linked. This is particularly the case for Islamic banks, who like the sector because of its sharia-compliance. Concern about their capital bases has already seen the central bank advocate the merging of five Islamic banks, which should be completed during the first quarter.
"Conventional banks have relatively less real estate exposure, especially compared to before the financial crisis, but Islamic banks have been affected and if you follow their results, there have been impairments on assets," said Waruna Kumarage, senior analyst for asset management at SICO Bahrain...............................................Full Article: Source
|