Wednesday 9 February 2011

UPDATE 1-Qatar sees risks in mixing Islamic, conventional banks | Reuters

The Qatar central bank said it saw higher risks from conventional lenders operating Islamic units, clarifying a recent ruling which asked commercial banks in the Gulf state to close their sharia-compliant operations. Qatar's central bank earlier in the week asked conventional lenders to close down their Islamic operations amid worries of overlap between the two, in a surprise move that boosted shares of Islamic lenders in the country. [ID:nLDE71503A]

The central bank issued a circular over the weekend providing few specifics on the move and had conventional banks such as HSBC (HSBA.L) saying it would seek clarification on the ruling.

"The directives issued recently ... are based on issues related to supervision and monitoring as well as monetary policy," the central bank said in a statement carried by state news agency QNA.

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