QIA is buying additional stocks upto 20% of local banks just to ease thier liquidity, but its not going to help in longer term coz the banks's who adopted predatory financing activities such as giving 80 to 85 times salary as personal loans just for life style knowing that the proceeds will not be utilised in money making acitivities on the contrary some nice luxury vehicles and round trips to the world will be the purpose of those loan on the other hand the person will be paying upto 75% of his salary as loan installment, dont expect him to keep paying for loan that is what exactly going to fire back coz as the different industries are going to sledge down the jobs the number of default increase specially for the banks who had NPL ratio of over 4%.
As a result the QCB is going to put heavy provisions for NPB further eating up thier liquidity and when you are talking about the corporate finance the impact is higher.
One of the guys are talking about higher deposit rates if you dont know all the banks have increased thier interest rates on existing loans and whatever deposit rates you are getting are not guaranteed on longer term.
Just wait and see and dont try to encash the situation
QIA is buying additional stocks upto 20% of local banks just to ease thier liquidity, but its not going to help in longer term coz the banks's who adopted predatory financing activities such as giving 80 to 85 times salary as personal loans just for life style knowing that the proceeds will not be utilised in money making acitivities on the contrary some nice luxury vehicles and round trips to the world will be the purpose of those loan on the other hand the person will be paying upto 75% of his salary as loan installment, dont expect him to keep paying for loan that is what exactly going to fire back coz as the different industries are going to sledge down the jobs the number of default increase specially for the banks who had NPL ratio of over 4%.
As a result the QCB is going to put heavy provisions for NPB further eating up thier liquidity and when you are talking about the corporate finance the impact is higher.
One of the guys are talking about higher deposit rates if you dont know all the banks have increased thier interest rates on existing loans and whatever deposit rates you are getting are not guaranteed on longer term.
Just wait and see and dont try to encash the situation