DOHA: The Qatar Central Bank (QCB) is tightening its grip on the banks to make sure they are not overexposed to the real estate sector and do not finance stock trading.
The banking regulator is concerned that banks do not expose themselves to uncalled for risks as speculative activities are part of both, real estate transactions and stock trading, reports Al Sharq.
“The aim of the central bank is to protect the interest of depositors, enhance financial stability in the country and fight against inflationary pressures,” the daily said.
Under the current economic boom, real estate transactions and share trading have both elements of speculation.
A lot of speculative activities go on in the two sectors and so banks must avoid overexposure to them.
The QCB will have fresh policies that will focus on problem-solving and crisis prevention and making sure that if a crisis brews it does not spread.
That is why it is taking precautionary measures and tightening its grip on banks and asking them not to be dangerously exposed to the above-said two sectors.
The other area of the QCB’s fresh policy focus is prudent risk management by the banking industry, said the daily.
The Peninsula
