Banks in the Persian Gulf can absorb as much as $36 billion in new credit losses before their capital base starts to erode, placing them in a strong position to weather the current economic headwinds, according to S&P Global Ratings. “Regional banks are highly profitable -- due to large proportions of non-interest-bearing deposits, sustainable sources of fee income and high operational efficiency" and they have “generous provision cushions built over recent years," S&P said in a research note. “That will help them navigate the current economic rough waters." Gulf banks can sustain a hit of 2.7 times their average annual credit losses.