Moody's Rating Agency has granted the Kuwaiti banking system a stable credit rating, indicating that strong economic growth will support the credit conditions of local banks.
According to the agency, non-oil GDP growth will remain strong, which will support the business field, expected to achieve growth of 3% this year, compared to 2.5% in 2019.
The report showed that the risks faced by the Kuwaiti banking sector include the concentration of loans, especially in the real estate sector, declaring that what mitigates these risks is the huge allocations for non-performing loans to banks, the strong capital for banks, and high liquidity.
Moody's expects domestic credit to grow by about 5% in 2020, with inflation in Kuwait growing by 3 percent, and it also expects non-performing loans to rise to 2% of total loans in 2020 compared to 1.6% in 2018.
Source (Al-Arabiya.net website, Edited)
