Qatar banks need to set aside QR8.5bn buffer - The Peninsula Qatar

Qatar banks need to set aside QR8.5bn buffer - The Peninsula Qatar:

"With the new accounting norms kicking in, Qatar banks are forced to set aside additional reserve. Based on the IFRS9 standards, created on the aftermath of 2008 financial crisis, the listed banks in Qatar alone will have to create a combined additional buffer of QR8.5bn, according to an estimate by KPMG Qatar. “The implementation in the new accounting standards (IFRS9) on January 1, 2018, will result in higher provisioning by financial institutions based on the new expected credit loss approach. The estimated expected credit loss charge on loans and advances for listed banks as a result of IFRS9 implementation will range from QR0.2bn to QR2.3bn,” Omar Mahmood (pictured), the Qatar-based Partner and Head of Financial Services for KPMG in the Middle East and South-Asia told The Peninsula in an interview. Qatar banks are however, well prepared for the expected impacts. The retained earnings of the listed banks are currently standing at QR47bn. Then they have the existing risk reserve of QR16.5bn, which would together come around QR64bn. These numbers clearly show Qatar banks have got adequate buffers to cope for the IFRS9 charge. "



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