Financial Stability

Financial Stability (FS) Sector serves the objectives specified under Article (6) of QCB Law No. 13 of 2012, viz.,

1. Stability of the Riyal exchange rate, and its convertibility to other currencies

2. Stability of the prices of goods and services

3. Financial and banking stability

In order to achieve the above objectives, the FS Sector uses the synergy among the functions of macroprudential policy and surveillance, monetary policy formulation, macroeconomic research and statistics. The Sector contributes to assessment of evolving global and domestic conditions, formulation of appropriate monetary and financial stability policies and their implementations.

Proposals on Qatar’s monetary policy to maintain the stability of the economy and exchange rate in Qatar are submitted by the Sector to the Monetary Policy Committee (MPC) and the decisions of the MPC are published by the Sector. Assessment of financial stability and policy suggestions are presented by the Sector to the Top Management and the Financial Stability and Risk Control Committee. Annual assessments of financial stability are published in the Financial Stability Review. The Sector is also responsible for the publications of several statistical bulletins which among others includes data on money supply, foreign exchange reserves and balance of payments. In view of the major role of the real estate sector in the economy and maintenance of financial stability, the Real Estate Price Index is also published by the Sector.

The FS Sector comprises of the following three Departments:

Financial Stability & Surveillance Department

Monetary Policy Department

Macroeconomic Research & Statistics Department

Financial Stability & Surveillance Department

Maintaining financial stability is one of the mandates of Qatar Central Bank (QCB) as documented in Article (5) of QCB Law No. 13 of 2012. To fulfil this mandate, “The Financial Stability and Risk Control Committee (FSC)" was formed under Article No. 115 of the QCB Law. H.E., the Governor of QCB, chairs this high-level Committee. The Committee has mandates (as in Article 116) to identify, assess and mitigate the risks of the entire financial sector; establish a homogeneous & cooperative regulatory and supervisory environment by enhancing co-operation between the regulators through exchange of information; and proposing policies relating to regulation, supervision and control.

To serve the above purpose, the FSC has approved the following definition for financial stability.

"Financial stability is a state in which the financial system, comprising of financial intermediaries, markets and market infrastructures, is capable of withstanding shocks and smoothly performing all its basic functions continuously and effectively, and has the confidence of its users and the public”. Read More

Macroeconomic Research & Statistics Department

Provide a strong conceptual and empirical basis for policy-making. More specifically, to increase knowledge of the functioning of the Qatari economy and to provide quantitative and qualitative models, tools and analyses that are relevant for the conduct of monetary policy. In addition, Compilation, analysis and dissemination of statistical information concerning domestic monetary and financial, and external sector activities.

1. Monetary & Financial Statistics Section.

Compile and publish statistical reports on money creation and money aggregates, on financial institutions and the real sector in Qatar.

2. Economic Research & Studies Section.

Submit regular reviews to the Top Management covering developments and issues related to the broad sectors of the economy. Also, draft the chapters on GDP, prices and labor force, public finances and external developments for the Annual Report.

3. Balance of Payments and International Statistics Section.

Compile and publish statistical reports on Qatar's economic relationship with the rest of the world in accordance with internationally accepted best practices.

List of reports and data issued and published on QCB website:

Macroeconomic Research & Statistics Department

Monetary and Financial Statistics Section.	QCB`s Statistics for Data Dissemination Standard, 1.Official Reserves. 2.Central Bank Survey. 3.Depository Corporation Survey. 4.Monetary Survey.
	Monthly Monetary Bulletin
	Quarterly Statistic Bulletin
	Qatar Statistical Bulletin for Non- Banking financial Sector.
	Statistics
	Main Economic Indicators
Balance of Payments and International Statistics Section.	Balance of Payments

Monetary Policy Department

Objective of the Department:

The department is responsible for developing and implementing monetary and exchange rate policies for the State of Qatar to maintain economic stability and the exchange rate. This includes analyzing data and forecasting liquidity conditions, coordinating with relevant departments to implement policy decisions, and evaluating the impact of monetary policy on Qatar's economy. The department is also tasked with the preparation of specialized studies on monetary policies and coordinates the activities of the Monetary Policy Committee.

The Monetary Policy Department consists of the following sections:

• Monetary Policy Section.

• Monetary analysis & Liquidity Section.

The functions of Monetary Policy Section are as follows:

• Proposal and preparation of Qatar’s monetary policy and exchange rates to maintain the stability of Qatar's economy and exchange rate and submit it to the Monetary Policy Committee.

• Coordinate the activities of the Monetary Policy Committee.

• Support decision-making related to monetary policy and exchange rates.

• Prepare press releases on monetary policy decisions and develop monetary policy statements for external communications.

• Conduct relevant studies related to monetary policy, such as research related to evaluating monetary, banking and credit policies and their efficiency in achieving their goals.

• Evaluate relevant monetary policies and their impact on Qatar’s monetary policy.

The functions of Monetary Analysis & Liquidity Section are as follows:

• Analyzing data and forecasting current and future liquidity conditions according to financial and economic assessments to ensure adequate liquidity levels in the financial system.

• Coordination with the Reserve Management and Financial Instruments & Payment Systems sectors to implement monetary policy decisions effectively to maintain stability in financial markets.

• Preparation of relevant studies to support the development of monetary policy and liquidity management strategies.

• Coordinate with the Financial Stability and Surveillance Department on macroprudential policies.

· Develop and implement strategies to enhance liquidity management effectiveness and improve QCB's ability to respond to market developments.

Data published on QCB website by Monetary Policy Department:

· The Monetary Policy Committee’s statement on interest rates.