QIB FINED 1.4 MIL­LION BY BOE

Qatar Today - - BUSINESS > BANK NOTES -

The Pru­den­tial Reg­u­la­tion Au­thor­ity, the reg­u­la­tory body of the Bank of Eng­land, fined the UK arm of Qatar Is­lamic Bank

1.4 mil­lion (QR7.23 mil­lion) last month for fail­ing to re­alise that more than 25% of its cap­i­tal had been lent to a sin­gle group of bor­row­ers. The move now ex­poses the bank to a high level of risk.

“When this group en­tered ad­min­is­tra­tion, the firm had to pro­vi­sion for the full amount out­stand­ing, which had the ef­fect of re­mov­ing over 25% of its cap­i­tal base and leav­ing the firm dan­ger­ously un­der­cap­i­talised. This is­sue was only re­solved by the firm's share­holder quickly in­ject­ing fur­ther cap­i­tal into the firm,” the PRA said. Act­ing chief ex­ec­u­tive of QIB (UK) Guy Pri­est­ley, how­ever, tried to put up a brave front and was of the view that the fine would not af­fect busi­ness op­er­tions. “It was clearly very un­for­tu­nate and we just want to move for­ward now,” said Pri­est­ley. QIB (UK) is only the fourth firm to be fined by the PRA; most of the fines in Lon­don are levied by the Fi­nan­cial Con­duct Au­thor­ity.

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