Bahrain banks’ asset quality to dwindle but remain contained for now: SP

Bahrain banks’ asset quality to dwindle but remain contained for now: SP

Property prices in Bahrain will fall at an accelerated pace while banks will face pressure on profits towards the end of 2020 due to the coronavirus pandemic and low oil prices, according to a new analysis.However, such deterioration, including a potential decline in asset quality indicators, will remain “broadly manageable” even under a base-case scenario, ratings agency S&P said on Thursday.The ratings agency noted that the measures carried out by the country's central bank have been effective so far.The authority has relaxed prudential requirements and asked banks to defer instalments for six months, in a bid to help the private and retail sectors cope with the pandemic.S&P cautioned that if the relief measures are not extended, the asset quality indictors of the country's banks will likely erode towards the end