The Qatar Central Bank has been “continuously strengthening” the regulatory and supervisory systems to ensure that the “financial system remains resilient” enough to address global financial risks and unforeseen challenges, said HE the QCB Governor Sheikh Abdullah bin Saoud al-Thani.
Moreover, he said “frequent and various stress tests” are undertaken to assess the ability of the banking sector to withstand various stress scenarios.
“Our monetary policy stance though largely responds to the policy rate moves of the US Federal Reserve, gives due considerations to evolving domestic economic conditions and tries to ensure enough systemic liquidity that is consistent with the real economy,” Sheikh Abdullah said in the context of the upcoming Euromoney Qatar Conference in Doha on December 9 and 10.
Unconventional measures and co-ordinated macro-prudential policy initiatives taken by central banks and other authorities have so far supported the global economic growth and in particular the global financial system, he noted. However, downside risks from the heightened tensions related to global trade and investment are causing shadows of risk. Upturns in global interest rate is another major area of concern. This may lead to increase in the cost of borrowing and intern the profitability if not addressed proactively, he said.
In addition, protectionist measures by some countries may also negatively impact the global trade and investment, Sheikh Abdullah noted.
As observed in the world economic outlook update, inflationary trends in US are firming up. This may leads to shift in market expectations on US interest rate hike. Any material change in risk perception of the investors may trigger capital flows from emerging market countries, leading to higher uncertainties in the financial market including foreign exchange market. Further, the appreciation of US dollar would have negative impact on economies with higher debt.
“Another, challenge to the economic outlook I could see is from the geopolitical issues in several economies. Continuation of these political tensions has wide range of implication to trade, investment as well as to the financial sector,” Sheikh Abdullah said.
The two-day Euromoney Qatar Conference will focus on Qatar’s post-blockade strategy and its development as a sustainable economy.
The event at St Regis Doha is being held under the patronage of HE the Prime Minister and Minister of Interior, Sheikh Abdullah bin Nasser bin Khalifa al-Thani.
Co-hosted by the QCB, the Euromoney Qatar conference’s keynote speakers include HE the Minister of Finance Ali Sherif al-Emadi, and the QCB governor.
The conference will provide a vast and detailed overview on strategy and finances in a series of workshops, talks, interviews and panel discussions.
Business / Business
QCB ‘continuously strengthens’ regulatory, supervisory systems to ensure financial resilience
Sheikh Abdullah: Focus on ensuring systemic liquidity.
