Islamic bank M&As projected to grow - Fitch
Islamic bank mergers and acquisitions (M&As) in the Gulf Cooperation Council (GCC) region are expected to grow, Arabian Business reported referring to an estimate made by Fitch Ratings. The agency underlined that consolidation would be ultimately positive for the sector as it needed larger, stronger and more efficient Islamic banks.
Fitch also noted that currently many banks lacked the needed market position in order to compete with large well-established peers. However, M&A deals in the field usually need government support because of the significant stakes the states hold in most banks.
Over the past decade, Islamic banking has been growing as GCC states are trying to boost their financing capabilities and create domestic Islamic finance hubs. Islamic banking M&As have become popular because sector groups are seeking ways to access growth opportunities and build low-cost deposits, Arabian Business added.
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