An IMF paper published in October shows that macroeconomic shocks had a large and negative impact on the amount of nonperforming loans on banks located in Gulf Cooperation Council member states during the crisis.

The global crisis exposed vulnerabilities at the banks in Gulf Cooperation Council countries as nonperforming loans on their balance sheets increased sharply and credit stagnated, raising worries that the economic recovery could be slowed down by credit constraints.

Raphael Espinoza and