Increased interest in Islamic banking and rising investment in banking technologies will be key trends in the
"Islamic trade finance could provide new opportunities and become the preferred choice for emerging rapid growth markets (RGMs). Technology has been identified as a key sector for investment by the
According to market research 76 per cent of bank customers in the
The report said the banking sector looks more optimistic and the provision cycle peaked last year. "Money set aside to cover bad debts dwindled at the
The UBF expects credit growth to pick up pace this year with retail lending growing more than six per cent. Analysts are also predicting overall credit growth will see a double-digit expansion with nominal credit expected to remain in the range of 10 to 12 per cent in 2014 and 2015.
Banks are expected to have another year of strong financial performance. The key risk factor to watch over the next 24 months will be developments relating to certain large restructured transactions. According to a recent report from Standard & Poor's the potential non-payment of these [restructured] debts could increase some banks' provisioning requirements, thereby reducing their profitability.
Still the credit-rating agency feels that asset quality will continue to improve, although the cost of risk is unlikely to reduce further. They suggest that banks' robust funding levels and good-quality capital should help them withstand adverse market developments, such as tighter liquidity and higher funding costs.
The UBF's annual l report said banks are cooperating with the
"We encourage member banks to cooperate in this scheme. Furthermore, we are working towards raising financial literacy among the population and to promote financial inclusion across the country," said
The bankers' body said economic developments such as winning the Expo 2020 bid has provided the
"Confidence in the industry is improving. It certainly seems that 2014 is primed to be favourable for both the banking industry. With a positive outlook ahead and a multitude of encouraging signs, the industry in the
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