DOHA: The geographical distribution of Qatar banks’ cross-border assets witnessed a shift in 2013. The share of European assets steeply declined from over 30 per cent in 2012 to 19 percent in 2013. On the other hand, the share of Mena countries (other than GCC countries) increased sharply from less than 15 percent to 24 percent, the QCB disclosed yesterday.
In view of limited size of the Qatari economy and concentration of domestic assets and liabilities, banks have been diversifying their activities to foreign countries. Increase in cross-border assets of local banks continued during 2013 contributed largely by steep increase in both cross border credit and cross border investment. The share of cross-border assets in total banking asset rose from 15.5 percent in 2013 to almost one fourth of the total banking assets. According to the latest Financial Stability Review, among the various components of cross-border assets, GCC countries accounted for the major share of lending by domestic banks. Investment in Mena (other than GCC) was highest followed by the GCC. Assets with foreign financial institutions were high in GCC and Europe. The Peninsula
