Fastest News Updates around the World

Al Rai: Projects abroad are more attractive destination for Kuwaiti banks

13

- Advertisement -

According to Al-Rai newspaper, citing authoritative sources in the banking sector, local banks have recently stepped up their activities in concluding joint foreign lending deals aimed at neighboring markets.

Sources told Al-Rai that Kuwaiti banks recently adopted a strategy that shifted part of their growth struggle with their loans overseas as they raised funding rates for the liquidity they siphoned into joint loans destined for overseas markets, led by Saudi Arabia. . , and other markets that are open to expanding development, explaining that the contribution came in different proportions and included directly government projects, while others – for companies from the private sector.

Al Rai cites sources saying that the low risks of syndicated loans, especially in light of the presence of large banks capable of managing them, have prompted a large number of local banks to compete vigorously for a share of the loans that were sold during the past period, explaining that that the target joint lending market For overseas markets, especially those that have announced clear growth plans for their projects, they have become more attractive to local banks, especially those that cannot compete locally, as well as those that have a high level of surplus liquidity ready for lending, in the face of a narrow room for growth in the local market.

Sources told the newspaper that the local banks’ moves in this direction are part of plans to increase leverage through less risky credit lines, through which a corresponding part of the accumulated excess liquidity can be absorbed.

Source: “Al-Ray”

Leave a Reply

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More