Kuwait – Mubasher: Stricter operation conditions in Kuwait will induce slower growth rate of Islamic banks during 2016, Fitch Ratings said.
The company classified all Islamic banks’ long-term issuer at “A+”, driven by a probable support from domestic authorities, if necessary, the firm stated.
Out of 10 domestic Kuwaiti banks, there are five Islamic banks, holding 39% of the total market share by assets, the firm wrote, believing that “Islamic financing growth will moderate in 2016” as a result of the steep decline of oil prices that negatively affects the economy and businesses. Nonetheless, its profitability is likely to remain unchanged, the agency expected.
