Qatar Central Bank Comfortable with Liquidity Levels

Doha, December 10 (QNA) - HE Sheikh Abdullah Bin Saud Al Thani, Governor of Qatar Central Bank (QCB) said the liquidity position, which has significantly improved in the first quarter of 2009, continues to strengthen with very good levels. The Qatari banking sector has succeeded in overcoming the tightened liquidity conditions since the second quarter of 2008 thanks to the direct and indirect measures being implemented by QCB, Sheikh Abdullah told Qatar News Agency (QNA) . While the sector's asset base has expanded by 27% over the past three years, the deposit base growth has helped the banks to finance the higher demand for credit, without having a negative impact on liquidity, explained QCB Governor. The growth rate for banks' assets was primarily the result of the investment in risk-free or low risk assets such as the government bonds, he added. A lot of risks have been reduced when the Qatari government bought the local equity portfolios of banks in 2009, explained Sheikh Abdullah. The preventive, proactive step to increase the capital has improved the capital adequacy ratios (CAR) even in the midst of a global economic slowdown, he said. QCB is monitoring the situation closely and will not hesitate to take the necessary enforcement actions, he continued. (QNA)