Doha, Qatar: Director of the Banking Supervision Department at Qatar Central Bank Ali Hamad Al Marri has underscored the importance of the decision to defer loan instalments and interest payments for three months, describing it as a proactive step to maintain financial stability and support both individuals and businesses in managing their financial obligations.
In a statement to Qatar TV, Al Marri explained that Qatar Central Bank is closely monitoring developments in the financial sector amid the current geopolitical conditions in the region. He emphasised that this ongoing assessment focuses on key indicators and aims to ensure the resilience of the banking system.
Al Marri noted that the findings of these assessments highlight three main strengths within the sector. “First, banks in Qatar enjoy high liquidity levels that are sufficient to meet market needs and customer demands,” he said. He added that Qatari banks also maintain strong capital bases exceeding regulatory requirements set by the central bank, while provisions remain adequate to cover credit risks.
Despite these positive indicators, Al Marri stressed that the current geopolitical fluctuations prompted the central bank to take precautionary measures. “As a proactive step, Qatar Central Bank has introduced a package of decisions divided into two main components,” he said.
He explained that the first component focuses on monetary policy measures aimed at enhancing liquidity within banks and the broader financial sector. The second component directly targets affected customers, allowing for the postponement of loan repayments and interest for a period of three months.
Al Marri concluded that these measures are designed to reinforce confidence in the financial system while providing temporary relief to borrowers, enabling them to better reorganise their financial commitments during uncertain times.
To recall, Qatar Central Bank had conducted a comprehensive assessment of the financial sector, in light of evolving regional geopolitical developments, according to a press release of QCB by the end of last month. The review confirmed that the financial system continues to operate from a position of strength.
Liquidity continues to be strong, capital levels significantly exceed regulatory requirements, and provisioning provides strong coverage against credit risk. The review noted that banks continue to hold substantial liquidity in both domestic and foreign currency and that resources are sufficient to meet customer demand, support normal market activity, and meet any short-term funding pressures under stressed conditions.
Borrower Support Measures: QCB will permit banks to offer borrowers affected by the current circumstances the option to defer loan principal and interest payments for a period of up to three months. Any such payment deferrals will be applied in accordance with banks’ internal policies and supervisory guidance.
