Qatar to set up deposit insurance, including Islamic scheme | GulfNews.com

Qatar to set up deposit insurance, including Islamic scheme | GulfNews.com:



"Qatar regulators will establish a deposit insurance framework that will include a Sharia-compliant scheme, one of several reforms aimed at modernising the financial sector of the world’s top exporter of liquefied natural gas.



The scheme is part of a strategic plan for Qatar’s financial sector developed by the country’s three regulatory bodies, which they aim to implement by 2016.



While government support for domestic banks is considered implicit in many Gulf countries, explicit deposit insurance is rare in the region but would help bring Qatar in line with best practices in other high-income jurisdictions.



The scheme would initially be set up under central bank law, a safety net that would promote financial stability, said the strategy plan published in the Qatar Central Bank (QCB) website. “Going forward, steps will be taken to implement a depositor protection scheme in Qatar as required by the QCB law. At a later stage, consideration will be given to developing a risk-based premium mechanism,” it said."



'via Blog this'