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Qatar banks geared up to boost capital base in line with Basel III norms 

July 1, 2014
Santhosh V Perumal, Gulf Times

Qatar’s banking industry is all geared up to strengthen the capital base in line with the new Basel III norms and in view of the umpteen opportunities unleashed by the country’s huge infrastructure development programme, it is understood.

In view of the expected increase in the capital adequacy ratio (CAR), many lenders are now contemplating moves to enhance their capital either through rights issue or hybrid routes.

The Qatar Central Bank (QCB), which has already stipulated a higher 12.5% Basel III CAR from the previous level of 10%, is expected to increase it further to 14% by next year and to 16% by 2019 so as to ensure adequate “cushioning” while the lenders go in for funding the major infrastructure projects, which are being announced in the run up to Qatar hosting the 2022 FIFA World Cup.

Read More: Gulf Times

 
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