QATAR BANKS SUFFER DUE TO TIGHTENED LIQUIDITY
Bank liquidity in the six-nation Gulf Cooperation Council has been tightening as a more than 50% slump in crude oil prices since mid-2014 slows deposit growth and pushes governments to boost borrowing. The situation in Qatar became a bigger issue at the start of the year than it was in 2008, according to experts.
Lenders in Qatar had experienced “extraordinary stress” this year amid the tightening liquidity and were forced to adapt their businesses to the low-oil environment. But Doha Bank QSC Chief Executive Officer R. Seetharaman has said that conditions are improving after the country's $9 billion bond sale in May. Banks were also facing a narrowing in net interest margins and higher interest expenses, he said. With the $9 billion bond sale, the cost of funding is also coming down for banks, said Seetharaman.