Qatar may issue a sovereign bond to local banks and consider tweaking monetary policy in coming months if excess liquidity in its banking sector continues rising.
Banks in the world's top liquefied natural gas exporter are already awash with deposits, which rose nearly 7 percent from a year ago to a record 378.3 billion riyals ($104 billion) in June, latest central bank data show.
Despite breakneck credit expansion - total loans jumped 33 percent on average in January-June - the overhang of unused money in the banking system has prompted some lenders to park large amounts of excess funds at the central bank's low-yielding deposit facility.
No comments:
Post a Comment