Moody's on Oct. 4 revised to stable from negative the outlook on Qatar's banking system, reflecting the resilience in the gas-rich nation's economy and banking system despite the ongoing regional turmoil in the Gulf, as well as the stable outlook on the sovereign's ratings.

Moody's said the government has been able to re-balance the country's economy and the banking system's credit profile as reduced liquidity from sources from other members of the Gulf Cooperation Council is being offset by inflows from government and related entities.

Stabilized liquidity from public sector inflows has reduced banks' reliance on market funding and has offset funding pressures due to the dispute, Moody's noted. Banks' tangible common equity is expected to remain stable at 15.5% of risk weighted assets, owing to credit growth and profit retention.

However, the agency said systemwide problem loans are expected to go up slightly, to between 2.2% and 2.5% of gross loans by 2019, compared to 2% in June.