World Bank: the level of competition among the lowest Gulf banks globally Economy
World Bank: the level of competition among the lowest Gulf banks globally
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It assured the World Bank that the level of competition in the GCC banking sector is among the lowest in the world, pointing out that the requirements of the stringent entry, restrictions on bank activities, the relative weakness of the systems of credit information are things all contribute to the weakening of competition within this sector .
He said Pietro Calles - the first in the finance sector specialist at the World Bank - that, by conducting field research and review of reports and studies available, the rules and regulations that are likely they hinder competition within the banking sector to lend to small and medium-sized business markets in the Gulf Cooperation Council analysis, as well as institutional framework for competition policy on which these rules and regulations, where it was found that the government-owned banks play a prominent role in lending to small and medium-sized business markets has been given the task of advantages, including lower cost of access to finance and lower perceived risk among investors and depositors level, which It may adversely affect competition and limits the benefits that accrue to these institutions and their clients. As covered in "news."
He added that government-sponsored initiatives, it may lead, such as subsidized loans and credit guarantees programs are being launched to improve access for small and medium-sized businesses obtain financing to a distortion of equal opportunities within the banking sector and the removal of private institutions.
He described the rules and regulations that define issuance practicing banking licenses in the Gulf Cooperation Council (GCC) procedures that it is not always clear, lacking half of these States to clear rules on periods of issuing approvals and the possibility of appeal against the decision rejected. Also, some countries still impose restrictions on the conduct of activities licenses.
The report concluded that improving competition in the banking sector can play a pivotal role in increasing access of small and medium businesses for funding. https://economy-news.net/content.php?id=6929