Fitch: Credit Profiles of GCC Banks to Weaken due to COVID-19

The Gulf Cooperation Council (GCC) banks' credit profiles are likely to weaken due to the COVID-19 pandemic and declining oil prices, regardless of the overwhelming stimulus packages worth billions of dollars, according to Fitch Ratings (Fitch).

Fitch notes that all six GCC policymakers were swift to launch relief programs intended to alleviate the economic effects of the pandemic. Overall, the region's Governments have declared a total of more than USD 200 billion in economic stimulus, mostly focusing on monetary and macro-prudential initiatives. However, Fitch added that this could be increased if the already declared stimulus packages are deemed insufficient.

Most c...