IslamicFinance.de

Qatari banks Masraf Al Rayan, Barwa Bank and International Bank of Qatar have begun initial talks for a potential merger. This deal would create the Gulf state's second-largest bank and it would have assets worth more than 160 billion riyals ($44 billion). If the deal goes ahead, it would be a rare example of consolidation among banks in the Gulf, which have previously been reluctant to tie up. The previously lavish state spending is now being trimmed to adjust to lower oil prices and the argument for consolidation is now more compelling. Though negotiations have begun, there is no guarantee any agreement will be reached. The proposed merger of Rayan, Barwa and IBQ depends on financial and legal due diligence, as well as securing approvals from regulatory authorities and shareholders of all three banks.