(MENAFN- The Peninsula) The Peninsula
H E Sheikh Abdullah bin Saoud Al Thani, Qatar Central Bank (QCB) Governor, has reiterated that the local banks are strong enough to face any probable ‘abnormal conditions' resulting from the siege imposed by the quartet countries on Qatar.
In a statement issued after Fitch Ratings lowered Qatar's credit rating by one notch to AA-minus on Monday, the QCB Governor said that the Qatari banking system is strong and efficient as proved by 'stress tests carried out routinely by QCB.
Qatar's lenders are quite capable of withstanding the conditions imposed by the Saudi-led boycott. Sheikh Abdullah said 'abnormal geopolitical events in the region may have prompted the rating agency's decision but the central bank believed its classification would change back in the 'very near future. Qatar's lenders are quite capable of withstanding the conditions imposed by the Saudi-led boycott, he re-affirmed.
Qatari banks remained highly solvent and profitable while the central bank would continue to adhere to international regulatory standards, especially concerning capital adequacy and liquidity, Sheikh Abdullah added.
'The deposits in the bank were in excess of QR39.3 bn. The data on bank liquidity are available to everyone, through the monthly report released by QCB which also includes data on the monetary base, he said.
On the decision of Moody's credit agency to lower the credit rating of Qatari banks, Sheikh Abdullah said that the current geopolitical events in the region had likely prompted the rating agency's decision but the central bank believed its classification would change back in the 'very near future, according to a statement on its website.
'QCB believes the agency will amend that change in the very near future. In terms of banking regulations, the Central Bank is strictly following international standards, especially in capital adequacy and liquidity. In addition, QCB has taken extra precautionary measures in the face of the negative impact of the oppressive siege, he added.
On Monday, in an exclusive interview to QNA, Sheikh Abdullah said the local banks are highly solvent and profitable. In terms of banking regulations, the central bank is strictly following in international standards, especially in capital adequacy and liquidity. In addition, QCB has taken extra precautionary measures in the face of the negative impact of the oppressive siege.
Sheikh Abdullah noted that the international reserves of Qatar Central Bank were in line with international standards. Foreign currency reserve levels for banks as excellent and is sufficient to cover the market.
Earlier, in an exclusive interview to CNBC, Sheikh Abdullah said Investment inflows into Qatar exceeded outflows even as Qatar grappled with the blockade. He noted that the country's stock market is increasing attracting more interest from foreign investors
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