Arab Bank's market share in Qatar is less than 5% because they have a very primitive lending policy, as a result their loan book does not grow, as compared to other banks, many of which (banks) are very new but have far bigger loan and income book, like Masraf Al Rayyan and Barwa Bank. This Bank is one of the oldest banks but has a policy of placing the ample liquidity in the inter bank market, instead of lending. Lending is the primary role of any commercial, where the margins in shape of interest and incomes are far higher than the inter bank market.
In Qatar most of other banks use Arab Bank's un-used cash as a short term borrowing against small margin over Qibor in order to cover their daily, weekly cash gaps.
Given the huge cash available at hand, Arab Bank in Qatar can double its income within few months, provided it starts lending to the solid business groups in Qatar.
Arab Bank's market share in Qatar is less than 5% because they have a very primitive lending policy, as a result their loan book does not grow, as compared to other banks, many of which (banks) are very new but have far bigger loan and income book, like Masraf Al Rayyan and Barwa Bank. This Bank is one of the oldest banks but has a policy of placing the ample liquidity in the inter bank market, instead of lending. Lending is the primary role of any commercial, where the margins in shape of interest and incomes are far higher than the inter bank market.
In Qatar most of other banks use Arab Bank's un-used cash as a short term borrowing against small margin over Qibor in order to cover their daily, weekly cash gaps.
Given the huge cash available at hand, Arab Bank in Qatar can double its income within few months, provided it starts lending to the solid business groups in Qatar.