Khaberni - The Qatar Central Bank confirmed on Monday the resilience and strength of the local financial sector in the face of the accelerating geopolitical developments affecting the region.
The bank clarified that Qatari banks have significant financial buffers in both local and foreign currencies, which enable them to meet all customer demands and face any sudden financing pressures with high efficiency.
"Repo" facilities and liquidity assurance
In terms of monetary policy, the bank announced the availability of unlimited "repo" facilities in Qatari Riyal, against eligible securities.
This move aims to ensure the continuity of liquidity flow in the local market without interruption, enhancing confidence among financial institutions and supporting business activity under exceptional circumstances.
Extension of cash facility terms
The support was not limited to the existing "overnight" facilities only, but the Central decided to provide additional facilities with terms extending to three months.
This approach grants banks more space to manage their cash flows over a broader time span, reduces the risks of short-term fluctuations, and ensures the stability of interbank interest rates.
Reserve requirement reduction to inject liquidity
In a bold decision to stimulate the banking system, the Qatar Central Bank decided to reduce the mandatory reserve ratio on deposits from 4.5% to 3.5%.
This step is expected to re-inject liquidity into the economic cycle, increasing the banks' ability to extend credit and finance existing projects.
Support for borrowers and installment postponement
The bank also considered the social and economic aspects of clients, allowing banks to offer affected borrowers the option to postpone the repayment of installments and interests for up to three months.
This measure comes to alleviate burdens on individuals and companies that may be affected by the current conditions, in accordance with the approved regulatory standards.
