QATAR'S LOAN-TODEPOSIT RATIO TO DECLINE
Qatar's loan-to-deposit ratio, currently in excess of 100%, is expected to decline gradually to reach 99% by 2016, according to a report by Qatar National Bank. This is due to a more moderate growth in lending compared with a buoyant deposit growth.
Non-performing loans (NPLs) are forecast to remain low in 2014-16 as asset quality is supported by the strong economic environment and the sizable proportion of low-risk loans to the government. Going forward, low provisioning requirements and efficient cost bases will also support banks' profitability, the QNB report adds.