AZZAM: The impact of the international crisis on us is clearly going to be noticeable. We are all connected; what happens in Europe and the USA affects the Middle East and the rest of the world. Because of the inter-linkages and the connection between banks, if banks in the major European countries become risk averse Justin Reid Womens Jersey , or tight on liquidity, they would not be able to place funds abroad, and would not have the appetite to finance existing maturing debt for countries in the region. So I would expect that countries that need to refinance would find it more difficult because of the international banks lack of willingness and ability to do so. There might be situation where intra-bank lines will be affected if banks in Europe are also experiencing tight liquidity conditions then the surplus funds they would normally deposit through the intra-bank market to other banks will be less. This is a global market, but different counties and different banks will feel it differently. Those who depend more on retail deposits will feel it less. Those who are wholesale banks Benardrick McKinney Womens Jersey , whose major deposit base is the intra-bank market, they will feel the heat. For example, GIB and ABC in Bahrain, these are wholesale banks without retail branches in the region – they depend a lot on the intra-bank market and they will feel it more than a bank like NBAD or ADCB or National Bank of Kuwait or NCB Kevin Johnson Womens Jersey , those are banks that are dependent more on branches and retail deposits. So it varies from one bank to another and it varies by countries as well.
How will this region specifically be affected by the international crisis in comparison to the rest of the world?
AZZAM: We have a different set of problems in the region than the problems banks in Europe, the USA or the Far East are facing. In Europe, we are seeing huge exposure to markets in Southern Europe and Greece. There are non-performing loans for which they need to take provisions, they need to recapitalize Nick Martin Womens Jersey , and there are problems with the Euro. We do not have these problems; we have minimal exposure to Greece and minimal exposure to Southern Europe. We are affected indirectly because the feeling of risk averseness has become wide spread. People are looking at what’s happening in Europe, they see the contraction, they see the high risk there; they will be affected. I cannot think of many businesses that are expanding today or going to the bank to seek additional credit to expand because people are becoming more worried and more risk averse. People do not want to expand right now and they are delaying decisions, not because of inherent conditions Julien Davenport Womens Jersey , but more because of the contagion with the international situation.
The connection between our region and the international market is always through the oil market. If, for example, the crisis in Europe blows up and we go into another dip or an. Wholesale Jerseys China Wholesale Jerseys Online Wholesale Jerseys Wholesale Hoodie Wholesale NFL Hats Wholesale Shirts Cheap NBA Jerseys Wholesale Authentic Soccer Jerseys Cheap Jerseys China Cheap Adidas NHL Jerseys