A Moody's sign on the 7 World Trade Center tower is photographed in New York in this August 2, 2011, file photo. REUTERS/Mike Segar
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Moody's Investors Service changed its outlook for Saudi Arabia's banks to negative from stable on the expectation that bad loans would rise over the next 12 to 18 months because of low oil prices and a decline in government spending.Banks' loan growth will slow to between 3 percent and 5 percent in 2016, from 8 percent in 2015 and 12 percent the previous year, it said.Still, capital buffers of Saudi banks are likely to remain "solid," with the sector's average tangible common equity ratio remaining stable at about 15.7 percent at the end of 2016, compared with 15.4 percent in September 2015, Moody's said.
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