These include providing banks with unlimited access to short-term funding using approved securities, launching a new loan facility that allows banks to borrow for up to three months, and cutting the amount of money banks must keep in reserve from 4.5% to 3.5%. Banks will also be allowed to offer customers who are affected by current conditions a repayment pause of up to three months, depending on their internal rules and regulatory approval.
The measures follow a review on the impacts the conflict in the region has had on Qatar’s domestic financial system, which found that the country’s financial sector remains resilient.
Seya Rahnema, an expert in banking and finance at Pinsent Masons, said: “The confirmation that liquidity and capital positions remain strong is important reassurance for market participants, while the additional support measures provide banks with greater flexibility to manage short‑term funding pressures.”
“Financial institutions operating in Qatar should review how these measures affect their liquidity management, funding strategies and customer engagement protocols. Borrowers should also engage early with lenders to assess whether relief options may apply to them.”
Banking and finance expert Matthew Escritt of Pinsent Masons added: “More broadly, QCB’s approach reflects a willingness to act early to preserve financial stability and orderly market functioning amid continuing external uncertainty.”
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