Islamic Banking Industry Growth Expected To Slow As Base Grows

News : The Islamic banking industry in Pakistan grew by 7% quarter-to-quarter in Q213, according to Dawn. The Islamic banking industry ' s asset base reached US$8.4bn, which stands as y-o-y growth of 27%. The value of deposits came to 771bn, representing y-o-y growth of 28%. Analysts have speculated that the momentum powering the industry ' s growth was likely to weaken as the market ' s base expands.

BMI View: Moody's has kept its outlook for Pakistan's banking system at 'negative', citing the industry's high exposure to sovereign credit risk and a challenging domestic operating environment. While we sympathise with these concerns, we believe that a lot has changed in the country over the past few months (e.g. election of fiscally conservative government and movement towards a new IMF programme), and that the outlook for the country's banks is not as grim as the agency portrays in its seemingly static assessment.

Islamic Banking Industry Growth Expected To Slow As Base Grows

News : The Islamic banking industry in Pakistan grew by 7% quarter-to-quarter in Q213, according to Dawn. The Islamic banking industry ' s asset base reached US$8.4bn, which stands as y-o-y growth of 27%. The value of deposits came to 771bn, representing y-o-y growth of 28%. Analysts have speculated that the momentum powering the industry ' s growth was likely to weaken as the market ' s base expands.

BMI View: Moody's has kept its outlook for Pakistan's banking system at 'negative', citing the industry's high exposure to sovereign credit risk and a challenging domestic operating environment. While we sympathise with these concerns, we believe that a lot has changed in the country over the past few months (e.g. election of fiscally conservative government and movement towards a new IMF programme), and that the outlook for the country's banks is not as grim as the agency portrays in its seemingly static assessment.

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