Bahrain's cbank seizure of 2 banks positive-Moody's

DUBAI, July 30 (Reuters) - Bahrain central bank's decision to seize two banks belonging to two debt-ridden Saudi groups is a positive step toward containing the impact on the wider banking sector, said an official at ratings agency Moody's.

The central bank said on Thursday it had assumed control of Awal Bank, owned by Saad Group [SAADG.UL] and The International Banking Corporation (TIBC), which is majority-owned by Ahmad Hamad Algosaibi and Brothers (AHAB).

"Taking control is a positive step towards containing the possible impact these banks may have had on the wider sector," Mardig Haladjian, general manager at Moody's in Cyprus, told Reuter by telephone.

"For the central bank this is probably a matter of having control over the outflows and inflows (of the two banks), a way for the authorities for overseeing outflows that might be initiated by the owners," Haladjian said. The central bank said both banks have substantial shortfalls of assets compared to their liabilities.

(Reporting by Nicolas Parasie; editing by Firouz Sedarat)