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Proactive steps to achieve robust growth: QCB chief

Proactive steps to achieve robust growth: QCB chief

Tribune News Network
Doha
Qatar Central Bank (QCB) has adopted a proactive approach to address local and regional economic challenges to maintain a robust financial environment, its governor has said.
“We have adopted a proactive approach to address local and regional economic challenges. Our objective as a central bank is to focus on exchange rates, prices and financial stability. We formulate our policies based on evolving circumstances, implement various prudential requirements and focus on improving communication channels,” QCB Governor HE Sheikh Abdulla bin Saoud al Thani told Oxford Business Group in an interview.
“We are continuing our efforts to strengthen the regulation and supervision of the sector in order to mitigate systemic risks. The QCB implemented International Financial Reporting Standard 9, with effect from January 1, 2018, after studying its impact on the capital ratios of local banks. Domestic economic conditions improved significantly towards the end of 2017,” he added.
The QCB chief said the government is actively promoting Qatar as a regional centre for financial technology (fintech) as new, cost-effective technologies are becoming increasingly prominent worldwide.
“Under the country’s Second Strategic Plan for Financial Sector Regulation 2017-22, fintech has been recognised as a primary tool for achieving long-term development goals for the financial sector. This will require the right regulatory environment, competitive operating costs, government support, funding and a robust financial services sector. There is strong momentum and new opportunities in Qatar to implement fintech such as digital payments, money management, lending, remittances and investments,” he said.
The QCB chief said these innovations will also create new regulatory and operational challenges. “Regulatory obstacles will need to be addressed through creating cross-border synergies in areas like knowledge sharing, investments and remittances. To ensure the safety and security of the domestic banking system, the QCB prohibited trading in bitcoin in February 2018,” he added.
He further said the global economy continues to improve and oil prices are recovering, which will result in a healthy fiscal balance.