Complete segregation of Islamic and conventional banking in Qatar “should reduce the risk of contagion” from one segment to the other in case banking troubles arise in either one, the International Monetary Fund has said in its country report.
A separate anaylsis by the IMF in its report on “Financial linkages across banks in Qatar” concluded that Qatari banks are interconnected, and called for “closer monitoring of cross-border exposures” of banks, and their domestic interbank exposures.
In February last year, Qatar Central Bank had directed local conventional banks that have Islamic windows, to stop opening new Islamic branches, accepting Islamic deposits, and extending new Islamic financing from 2012.
“The QCB decision was motivated by supervisory and monetary policy considerations,” IMF said.
No comments:
Post a Comment