The Law of the Qatar Central Bank and the Regulation of financial Institutions Issued by virtue of Law no (13) of 2012 defined QCB Objectives and its relations with other institutions in Qatar under Part II in Articles no.5,6,7 and 8 as follows:
Article no. (5) defines that QCB, for the purposes of developing and supporting the national economy, aims at achieving the following within the framework of Qatar’s general economic policy:
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Preserve currency value and assure monetary stability
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Act as a regulatory, control and supervisory higher authority for all the financial services, businesses, markets and activities inside or through the state of Qatar in accordance with the best international standards and practices.
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Establish governance mechanisms towards a stable, transparent and competitive sector to carry out financial services, businesses, markets and activities based on market rules.
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Reinforce public confidence in Qatar as a pioneering global hub for financial services, business, markets and activities.
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Ensure consistent development of financial services, business, markets and activities sector in line with the objectives of economic and comprehensive development in Qatar.
Article no. (6) denotes that QCB seeks to achieve the objectives of the general economic and development policies in cooperation and coordination with the competent ministries and government authorities in a manner that does not contradict with the following objectives:
Stability of QR exchange rate and its capability of being exchanged for other currencies.
Stability of commodities and services prices.
Financial and Banking Stability
Article no. (7) defines that QCB, as the competent higher authority, layout and enforce the State monetary policy, policy of the exchange rate and financial and banking supervision within the framework of the national strategy and in accordance with the best international standards and practices, and shall carry out the necessary actions, especially the following:
- Cash issuance and regulation of its circulation.
- Act as a bank of the government.
- Act as a bank for all the banks and financial institutions operating in Qatar.
- Establish regulations and rules, which lead to the stability of the financial and banking system and increase its efficiency and contribute to its development.
- Establish regulations, instructions and guidance on governance, transparency and sound management in all financial institutions under QCB’s supervision.
- Establish and implement principles, regulations and standards related to control and supervision of the financial institutions.
- Establish, either by itself or contributing with other banks working in the State, a system or a fund for protecting and ensuring deposits.
- Establish systems and procedures for protecting consumers of financial services and products, including regulation of instruments and financial products and derivatives, and raising awareness of the surrounding risks.
- Grant licenses for financial institutions to carry out services, business and
activities and supervise and control them subject to the provisions of this Law and the relevant
decisions.
- Facilitate and encourage innovation in providing services, business and financial activities.
- Take the necessary measures to counter global, regional and local, economic and financial disturbances in coordination with the ministry.
- Take the necessary measures to reduce crimes related to services, business and financial activities.
- Manage and invest its money and reserves.
- Establish, administer and develop supporting financial and banking services systems.
- Establish, manage and develop credit bureaus, institutions and corporates which serve its objectives.
- Offer advice to the Council of Ministers in all financial and economic affairs.
- Notify the Council of Ministers of any factors, which may jeopardize the financial or banking stability and propose the relevant solutions.
- Represent the State in international and regional financial monetary institutions.
- Carry out research and publish studies and statistics relating to QCB role and functions.
- Any other duties or competencies assigned by His Highness the Emir.
Article no. (8) defines that QCB, as the competent higher authority, shall in accordance with the best international standards and practices, layout and enforce policies related to regulation, control and supervision of all services, within the framework of strategic National Vision. Business and financial activities carried out by or through Qatar Financial Center (QFC), and shall lay out and follow up the enforcement of the policies related with regulation, control, and supervision of all the financial markets in Qatar.
