Home
|
Media Center
|
Careers
Personal
Accounts
Loans
eBanking
NRI Business
Other Services
Corporate
Corporate Banking
International Banking
Syndicated Loans
Trade Finance
Long Term Finance
Working Capital Facilities
SMEs Facility Application – Law (2) – 2021
Investor Relations
Our Strategy
Financials
Financial News
BBK News
Local & Global Market
Shareholder's Queries
Customer Service
Branch Timing
Request for Support
Security Center
FAQ
Tutorials
Contact Us
About Us
About Us
BBK Network
Subsidiaries
Board of Directors
Executive Management
Divisions
Corporate Governance
Awards
BBK awarded for distinguished Corporate Governance practices
Bahrain’s pioneer in commercial and retail banking
BBK wins first place for excellence in Corporate Governance practices
BBK wins Bahrain eContent Award
BBK newsletter
CINET
BBK Press releases
Latest News
Archives
Financial News
Latest News
Archives
Internet Banking
Retail login
Help
|
Alert
What do you want to do?
Select here
Access Retail Internet Banking
Home
Media Center
Financial News
Archives
Archives
23-03-20
Interest rate cuts by UAE, KSA to put pressure on their banks' profitability, reduce their net interest margins
(MENAFN) According to analysts, the interest rate declines stated by the UAE and KSA will put pressure on their banks' profitability and reduce their net interest margins in 2020.
On March 4, The Central Bank of the UAE cut interest rates by 50bps and then again by 75bps on March 16 to support the banking sector and economy against the effects of COVID-19; on March 3, the Saudi Arabian Monetary Authority (Sama) also declined its official repo rate by 50bps and by 75bps on March 16 - the lowest level ever.
The UAE's rates were declined with the US Federal Reserve's decision to drop rates over the pegging of the UAE's dirham to the USD.
As said by Mik Kabeya, assistant vice-president and analyst at Moody's Investors Service, "the sizeable cut in interest rate will reduce UAE banks' net interest margins [NIMs] because gross yields earned on loans will decline more than the funding cost paid on deposits, and because the rate cut is unlikely to materially increase credit volumes in the current difficult operating environment".
MENAFN2303202000450000ID1099897227
View complete sitemap
Personal
Accounts
Loans
Mortgage
eBanking
ATM
Internet Banking
SMS Banking
NRI Business
Other Services
Corporate
Corporate Banking
International Banking
Syndicated Loans
Trade Finance
Long Term Finance
Working Capital Facilities
SMEs Facility Application – Law (2) – 2021
Investor Relations
Our Strategy
Financials
LCR Reports
Financial News
BBK News
Local & Global Market
Shareholder's Queries
Customer Service
Branch Timing
Request for Support
Security Center
FAQ
BBK tariffs
Tutorials
Customer Protection
Contact Us
About Us
About Us
BBK Network
Subsidiaries
Board of Directors
Executive Management
Divisions
Corporate Governance
Follow us