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Canada Goose online (The following statement was released by the rating agency) DUBAI/LONDON, September 09 (Fitch) The slowdown in buy canada goose jacket cheap loan growth at Saudi Arabian banks reflects a canada goose black friday sale deteriorating operating environment, says Fitch Ratings. Total sector loans were up an annualised 10% in 1H15, compared with 17% in canada goose clearance 1H14. We expect credit canada goose coats demand to hold steady Canada Goose Parka at these lower levels to end 2015, and slightly lower growth in 2016. New lending has traditionally been Canada Goose Jackets to government and oil related projects, and, more cheap Canada Goose recently, to the retail sector. The slowdown reflects general pressure on Saudi Arabia’s economy, which is heavily canada goose store dependent on oil. Credit volumes are important for Saudi banks, which rely heavily on net interest income to support revenue growth. Slacker loan growth will put buy canada goose jacket pressure on overall profitability. But banks are likely Canada Goose Outlet to offset lower lending contributions with https://www.expeditionparkaoutlets.ca further efficiency improvements, and canada goose clearance sale to a smaller extent stronger income from securities portfolios. The sovereign issued its first medium term bonds since 2007 in canada goose uk June and is issuing monthly Canada Goose online from August to the end of the year. Maturities will vary from three to seven years, giving banks an alternative to traditional and less remunerative short term treasury bills. In addition, the domestic policy rate, currently 0.25%, is likely to rise if uk canada goose outlet the US Fed raises its rates due to the riyal’s peg to the dollar. This will push cheap canada goose uk up rates on domestic commercial and consumer lending, allowing banks to widen Canada Goose Coats On Sale margins because a large proportion of deposits are not remunerated. But a Saudi Arabian Monetary Agency working paper from May 2015 warns that a 1% rise in the interbank SIBOR rate not our base case would result in stagnant loan growth during the quarter immediately after the rate shock. This would be bad news for the banks. Positively, there are no real signs of asset quality deterioration. Impaired loans were holding steady at 1% of total sector loans at end June. We expect some deterioration, particularly canada goose uk black friday in the contracting and construction sector, and also in retail portfolios uk canada goose over the next 18 months. We believe banks will tighten underwriting standards in response. Capital ratios are holding up, particularly in light of slower growth and strong internal capital generation. The Saudi banking sector is scored ‘a’ on our banking system risk indicator, denoting very high standalone strength. This is the highest score among GCC peers and below only Australia, Canada and Singapore. The banks’ ability to maintain good results and strong balance sheet indicators is key to this high rating, but could be tested canadian goose jacket in a more Canada Goose sale difficult environment. The above article originally appeared as a post on the Fitch Wire canada goose uk shop credit market commentary page. All opinions expressed are those of Fitch Ratings. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. Canada Goose Online PUBLISHED RATINGS, canada goose CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED canada goose factory sale ANOTHER PERMISSIBLE SERVICE canada goose uk outlet TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH canada goose coats on sale WEBSITE Canada Goose online.