First Published: 2017-10-17

Fitch Ratings says threat to Qatar liquidity fading
Threat to Qatari banks funding, liquidity posed by withdrawals of foreign deposits since Saudi-led boycott began in June appear to be fading according to Fitch.
Middle East Online

Fitch warned however that "as long as the boycott continues, risks to funding remain"

DUBAI - The threat to Qatari banks' funding and liquidity, triggered by withdrawals of foreign deposits amid a Saudi-led boycott of Doha, appears to be fading, Fitch Ratings said on Tuesday.

Qatari banks' overall funding increased slightly in August, according to a report released by Fitch, the first upward movement since the boycott began in June, sparked by accusations of Doha's ties to radical groups.

Funding by the Qatar Central Bank, which rose sharply in June, slowed in August, suggesting that banks no longer needed the support, the London-based agency said.

The cash outflow has been replaced largely by Qatari public-sector deposits, inflows from international asset managers, debt and issuance of Islamic sukuk bonds to international investors, Fitch said.

Fitch warned however that "as long as the boycott continues, risks to funding remain, and higher funding costs are weighing on bank (profit) margins".

In June, Saudi Arabia, the United Arab Emirates, Egypt and Bahrain severed diplomatic ties with Qatar and imposed economic sanctions on Doha, accusing it of sponsoring Islamist extremists.

Doha denies the charges.

Last month, Moody's Investors Service estimated that around $30 billion were withdrawn from Qatar's banking system in June and July.

Moody's estimated that Qatar used $38.5 billion -- equivalent to 23 percent of its GDP -- to support the economy in the first two months of sanctions.

Qatar National Bank, the emirate's largest lender, last week reported a healthy increase in the net profits for the both third quarter and the first nine months of the year.

 

Russia mulls supplying S-300 missile systems to Syria

Bashir fires Sudan foreign minister

Washington: Assad still has 'limited' chemical capability

US has 'concerns' about Turkey holding fair vote under state of emergency

Saudi women embrace sports headscarves

Turkey in shock after violent Istanbul derby

Iraq pays first war reparations to Kuwait since 2014

Fiery kites adopted as new tactic by Gaza protesters

Romanian president slams plan to move Israel embassy

Western strikes on Syria bring no change whatsoever

Trump criticises OPEC for high oil prices

Syria says rebels south of capital surrender

Market has capacity to absorb higher oil prices: Saudi minister

Putin 'ready' for Trump summit

Saudi Arabia to host first public film screening

HRW criticises Lebanon for evicting Syria refugees

Saudi says intercepted ballistic missile from Yemen

European MPs urge US not to scrap Iran deal

Oil price soars to highest level in years

Two more pro-Kurdish MPs stripped of Turkey seats

Oil theft 'costing Libya over $750 million annually'

Turkey's snap polls: bold gambit or checkmate for Erdogan?

Iran arrests senior official over public concert

Bahrain sentences 24 to jail, strips citizenship

UN experts urge Iran to cancel Kurd's death sentence

Moderate quake strikes near Iran nuclear power plant

Syria regime forces caught in surprise IS attack

Turkey sentences 18 to life for killing ‘hero’ coup soldier

Exxon faces setback in Iraq as oil and water mix

Libya to clamp down on fuel smuggling

Yemen to arrest colonel for overlooking African migrant rape

Erdogan sends Turkey to snap polls on June 24

Qatar joins Gulf military exercise in apparent compromise

Saudi-Russia oil alliance likely to undercut OPEC

UN in security talks with Syria on chemical probe

Riyadh says two al Qaeda militants killed in Yemen

Record of women candidates in Lebanon, but you can't tell from TV

Sudan protests to UN over Egypt voting in disputed area

Erdogan calls Turkey snap polls for June 24

Rights watchdog say African migrants face rape, torture in Yemen

Nine years since last vote, Lebanon in election fever

Israeli fire neat Gaza border injures five Palestinian

Egypt army says killed jihadist leader in Sinai

Iraq sentences over 300 people to death for IS links

Syria chemical weapons visit delayed after gunfire