Saudi banking system outlook revised to negative from stable – Moody’s

By FXStreet Moody’s rating agency has revised Saudi banking system outlook to negative from stable, reflecting expectation of persistently low oil prices, with government spending declines to weigh on sector.

Headlines – Reuters

We expect the operating environment for saudi banks to weaken over the next 12-18 months”

With prospect of lower oil prices for longer and 14% reduction in public spending in 2016, believes credit risks across system are rising

Banks will also continue to remain exposed to event risks stemming from persistently high single-party exposures

Tightening liquidity to likely expose banks to greater funding volatility in line with regional pressures
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Source:: FX Street