Qatar bank liq­uid­ity tight­ens in Jan­uary as de­posits de­cline

The Pak Banker - - FRONT PAGE -

Qatar bank liq­uid­ity last month tight­ened fur­ther as lend­ing rose and cus­tomer de­posits de­clined in the world's big­gest ex­porter of liq­ue­fied nat­u­ral gas.

Qatar banks' credit fa­cil­i­ties within the coun­try climbed 1.3 per cent to 673.5 bil­lion riyals (Dh679.2 bil­lion, $185 bil­lion) in Jan­uary from the pre­vi­ous month, while do­mes­tic cus­tomer de­posits dropped al­most 2 per cent to 552.8 bil­lion riyals, ac­cord­ing to data posted on the cen­tral bank's web­site. That wors­ened lenders' loan-to-de­posit ra­tio to 121.8 per cent from 117.9 per cent, ac­cord­ing to Bloomberg cal­cu­la­tions. Liq­uid­ity at banks in Qatar, which may post a bud­get deficit of $13 bil­lion this year, is tight­en­ing as rev­enue from en­ergy re­sources sink. Re­flect­ing the drop in cash hold­ings at banks, the three-month Qatar In­ter­bank Of­fered Rate in Fe­bru­ary climbed to the high­est level since 2011. The na­tion's cen­tral bank can­celled two suc­ces­sive monthly trea­sury bill auc­tions this year. Money lent by Qatari banks as a per­cent­age of their de­posits is well above its neigh­bours, who have also suf­fered due to oil's plunge.

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