QIB FINED 1.4 MILLION BY BOE
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.