HE Governor of Qatar Central Bank Sheikh Abdulla Bin Saoud Al-Thani said that the central bank's foreign international reserves and liquidity are worth more than twice the monetary base, which is the total money issued in addition to all the deposits of local banks including the required reserves which cannot be withdrawn.
His Excellency said that such a fact makes it clear that the available reserves are more than enough whether to defend the Qatari riyal or for monetary policy tools. HE the central bank governor was speaking during the final day of Euromoney 2017 and discussed some of the data related to the banking and financial sector in the State of Qatar. His Excellency stressed that the central bank's foreign assets were a small fraction of the foreign assets in the State of Qatar, despite that the international reserves and foreign currency liquidity were eight times issued currency. The law states that reserves must not be less than one time issued currency.
His Excellency highlighted that assets of commercial bank in the State of Qatar grew on a yearly basis by 12.8 percent in the first nine months of 2017. Deposits of commercial bank clients grew during the same period by more than 17.5 percent. Credit facilities also grew 13 percent. Capital adequacy for banks operating in Qatar increased by more than 15.4 percent. The delinquency rate was 1.5 percent, which HE the governor said reflected the quality of the assets of commercial banks operating in Qatar.
HE the Governor of Qatar Central Bank said that return on shareholders' equity in the first nine months were 14.5 percent, while return on assets were 1.6 percent. Liquidity coverage for national banks increased by more than 141 percent and 143 percent for all banks operating in Qatar.
His Excellency also stressed on the commitment of all banks and financial institutions to International Financial Reporting Standard 9 (IFRS 9) as well as the Basel Committee. HE the Governor also said that this year's Euromoney has invited a host of decision makers, and experts in economy and finance to discuss the latest developments and challenges facing the local as well as the global economy.
His Excellency said that Qatar's hosting of the conference for the sixth consecutive year despite the illegal siege imposed on the country from some of the neighboring countries. His Excellency added that such a fact reflects the state's commitment to such events and to discuss international developments in the economy in general and the financial sector in particular, with the goal of helping that sector and achieving sustainable development.
HE Sheikh Abdullah bin Saud Al-Thani said that the global economy has faced a number of challenges during the past decade, including a number of global and regional crises and it had a significant implications for different economies, which called on decision makers, specialists and experts around the world to accelerate the for the best solutions and plans to reduce the effects of those crises. These efforts have had a significant impact on overcoming the challenges, putting economic growth on track, maintaining low inflation levels, getting out of the cash management cycle, and it is reflected in recent reports and statistics on global economic developments, which confirm the success of the measures and policies adopted, especially in developed countries, and at the level of international financial organizations and institutions.
HE said that the State of Qatar has handled the siege with the highest level of efficiency, adding that Qatar has succeeded in breaking the siege thanks to the wise leadership of His Highness the Emir Sheikh Tamim bin Hamad Al-Thani and the support of the State for all sectors, so that the effects of that unjust siege have been completely overcome, with the State supporting the private sector to enable it to play its role, especially in the area of self-sufficiency in foods and supplies, as well as self-reliance for various services, and efforts to support national products, and the successful state policies in the preparation of a strong infrastructure in ports, airports, markets and free economic zones, and also to provide all facilities for the small and medium enterprises to improve their role in economic development, and perhaps the most important lessons learned from the injustice siege imposed on the state is the self-reliance in order to achieve self-sufficiency in a number of goods and products and the resettlement of services.
HE stressed that the Qatari economy remained strong and the inflation levels remained stable. All infrastructure projects including roads, bridges, stadiums, etc. are being implemented according to the plan, and will be completed on time. The new budget for the year 2018 will also support economic diversification, there is also an increase in government spending on all projects and services.
He pointed out that the financial sector in the State of Qatar has witnessed a great development during the past years, this was represented in the standardization of regulatory and supervisory regime for this sector under the umbrella of the Central Bank of Qatar, and a new law regulating the bank's work was issued. The Bank's administrative restructuring has been carried out in accordance with the best international standards in order to upgrade the work and provide high quality services.
HE Sheikh Abdullah bin Saud Al-Thani stressed that regulators and State supervisory regime work in full coordination , and in accordance with the legislation governing work . The strategic plan for the financial sector in the country has been completed in 2011-2016, and work is currently underway to launch the second strategy of 2017-2022 during the next week, which is based on a number of basic pillars, foremost attention to human cadres as the main investment for any progress and development , as well as focusing on the financial technology, which is a challenge to banks and all financial institutions , because of its great importance in banking and financial transactions , as well as its surrounded risks.
The strategy is also concerned with financial inclusion, and the need to raise awareness among the public.
HE Governor of Qatar Central Bank (QCB) expressed his hope that the conference will continue its success, and achieve the important objectives for which it is held.