The local banks have recently increased their activity in concluding joint loan deals directed towards neighboring markets, driven by fears of the continued slowdown in local development projects, and fears of inability to achieve targeted growth rates that could maintain their market shares.
Responsible banking sources told Al-Rai that Kuwaiti banks have recently adopted a strategy that transferred part of their battle for growth with their loans abroad, as they raised the rates of financing liquidity that they pumped into joint loans directed to foreign markets, led by Saudi Arabia, and other markets open to developmental expansion.
The sources indicated that the low risks enjoyed by syndicated loans, especially in light of the presence of huge banks capable of managing them, encouraged a large number of local banks to compete strongly to seize shares of the loans that were marketed during the last period.
The sources pointed out that the syndicated loan market directed to foreign markets, specifically those that announced clear growth plans for their projects, has become a more attractive destination for local banks, especially those that are unable to compete locally, as well as those that have high levels of liquidity surpluses ready for lending, amid a narrow space for growth in the local market.
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