ID :
225462
Mon, 01/30/2012 - 19:51
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HE CQB Governor Warns of Possible Euro Crisis Impact on GCC

HE CQB Governor Warns of Possible Euro Crisis Impact on GCC Doha , January 30 (QNA) - HE the Governor of the Central Bank of Qatar (CBQ) Sheikh Abdullah bin Saud Al Thani has warned that the elongation of Euro debt crisis could indirectly lead to an unfavorable impact on the GCC's financial sector. Addressing a symposium held here on Monday by Qatar Financial Center (QFC) Regulatory Assembly with a view to addressing the financial risk management in the GCC in response to the lessons of the global financial crisis, HE Sheikh Abdullah bin Saud Al Thani highlighted, the policies GCC put in place, saying that they were placed at the right moment to guarantee the sectors stability and inspire confidence in the market. HE the CBQ governor said that the policies succeeded in encouraging investors, which revitalized the market. However he noted that the road is still "long" for the financial institutions to reach the pre-2008 investor confidence levels. The address included central bankers, regulators and senior risk professionals from across the banking, insurance and asset management sectors in the region. HE Sheikh Abdullah bin Saud Al Thani discussed a number of policies implemented by QCB, one of which was establishing the Qatar Credit Information Center (QCIC) in March 2011. He said that establishing the center was to enhance transparency and to regulate the market more efficiently. He also pointed to establishing the risk management authority, charged with studying systemic risks and recommending policies to counter them as well as raising awareness on the importance of risk management in any financial institution. Elaborating HE CBQ Governor added that risk management is now a high priority on the list of different Qatari banks and other financial institutions in the country. HE the Governor of CBQ made clear that the Bank is making efforts for the merger between the control Organizing institution of the financial sector. HE the CBQ Governor announced that QCB stressed that the current economic disturbances in the world point to the main risk factors, although Sheikh Abdullah bin Saud Al Thani noted that the way in which these risks impose themselves have differed. He referred to the latest International Monetary Fund report which said that the widening sovereign spreads led to increased risks, on the macroeconomic level in particular. This, in turn, led to insufficient progress in developing medium-term fiscal consolidation, which caused more worry in the market the Governor added. HE Sheikh Abdullah bin Saud Al Thani stressed the importance of raising awareness about risk management and underlined the key significance of inspiring confidence in the financial sector. He said that this can be achieved by constant regulating and periodical analysis of the market. The governor praised holding a symposium on risk management in the GCC, at a time where the stability of the global economy is threatened. He expressed his hope that the symposium can translate the lessons learned from the debt crisis into an effective way of risk management, so GCC financial institutions can overcome any internal or external challenges. A press statement released by QFC today said that whilst effective risk management practices have been examined extensively in many international venues, the Symposium is one of the first to address issues that are more specific to the Gulf region. "The QFC Regulatory Authority is continuing to strengthen its ability to identify emerging macro prudential risks to the financial sector," said QFC Regulatory Authority Chairman Phillip Thorpe, " staging of the Symposium demonstrates both the QFC Regulatory Authority s proactive approach to addressing risk across the financial sector and Qatar s determination to be a regional leader in risk management best practices," he added. In his inaugural GCC Risk Management Symposium the New Order, the QFC Regulatory Authority Chairman Phillip Thorpe said,'' The purpose of today s meeting is to provide a forum for discussion of the fundamental changes that are underway in the area of risk management. We hope that the outcome of the debate will leave all of us with a renewed focus and direction on ways to strengthen risk management at our institutions'', he said. ''The importance of this topic at this time has been made evident by the severe dislocation in financial markets and high levels of volatility that we have seen over the last three or four years. While we can all be grateful that the GCC region has escaped the worst effects of the global economic slowdown, its institutions have not been immune - nor will they remain protected from financial stress going forward'', Phillip Thorpe added while addressing the event. It is worth to mention that the QFC Regulatory Authority is an independent regulatory body established by article 8 of the QFC law. It regulates firms that conduct financial services in or from the QFC. It has a broad range of regulatory powers to authorise, supervise and when necessary , discipline firms and individualas.The QFC regulatory authority regulates firms using principle-based legisltion of international standard , modeled closely on that used in major financial centres. While the Qatar Financial Centre (QFC) is a financial and business centre established by the government of Qatar and located in Doha. It has been designed to attract international financial services institutions and major multi-national corporations and to encourage participation in the growing market for financial services in Qatar and elsewhere in the region. The QFC operates to international standards and provides a first class legal and business infrastructure for those doing business within the QFC. The QFC was created by QFC law No./7/ of Qatar and has been open for business since 1 May 2005.(QNA)

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