Text size:

  • Small
  • Normal
  • Large

Qatar banks receive draft rules on Basel III

Qatar's central bank has sent a draft circular on new Basel III capital rules to conventional and Islamic banks that includes requirements for issuance of instruments such as hybrid bonds, it said on Thursday.

Qatar's central bank has sent a draft circular on new Basel III capital rules to conventional and Islamic banks that includes requirements for issuance of instruments such as hybrid bonds, it said on Thursday.

"This is a consultative circular. The final version is slated to be completed once a QIS (quantitative impact study) is undertaken for national banks," the central bank said in a written answer to Reuters questions.

"The timeline for implementation etc. will be finalised only after the results of the QIS," it said, adding that the circular, sent on July 28, covered treatment of Tier 1 core and Tier 2 supplementary capital.

Banks in Qatar, the world's top liquefied natural gas exporter, have been waiting for the central bank's guidance on how debt instruments such as hybrid bonds will be treated under the new Basel standards, which will be phased in around the world over the next several years.

Hybrid debt, which has equity-like characteristics alllowing it to count towards banks' core capital ratios, can include perpetual debt and Islamic bonds. It can help to diversify banks' stakeholder bases in a region where ownership has traditionally been dominated by local parties.

Commercial Bank of Qatar has picked two banks to arrange a bond issue to boost its core capital, sources told Reuters in April. Such an issue would help to assuage analysts' concern that its purchase of a majority stake in Turkey's Alternatifbank, completed last month, could weaken its capital position versus its peers.

Meanwhile, Doha Bank's chief executive told reporters in May that the country's fifth-largest bank by market value might sell a hybrid instrument as part of its plans to increase capital by 50 percent.

Hybrid debt issuance is rare in the Gulf but gaining popularity. Two United Arab Emirates-based Islamic banks have sold Tier 1-boosting sukuk since last November, while Dubai's Emirates NBD raised $1 billion from a Tier 1 bond issue in May this year.

 

* Reuters

Back to the top

More articles


Editor's Picks

 Cityscape Abu Dhabi 2014 will run until April 24, 2014. Fatima Al Marzooqi / The National.

In pictures: Cityscape Abu Dhabi 2014 opens
at Adnec

Key developments and master plans are being unveiled at this year’s property exhibition in the capital.

 Marina Square apartments Reem Island: Q1 2% rise. Studio - Dh65-68,000. 1BR - Dh75-95,000. 2BR - Dh110-145,000. 3BR - Dh170-190,000. Q1 2013-Q1 2014 no change. Sammy Dallal / The National

In pictures: Where Abu Dhabi rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Abu Dhabi have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Designed by London-based Thomas Heatherwick, founder of Heatherwick studio, the park will feature an outdoor cinema, an organic garden, picnic areas and cafes and restaurants. Photo courtesy Salama bint Hamdan Al Nahyan Foundation

Futuristic Abu Dhabi park to be built in the desert shade

Spread over 125,000 square metres, Al Fayah Park, on Airport Road, will be covered by a sand-coloured canopy, 20 metres high, with the appearance of cracked desert land from above.

 Room with a view from one of the 21 duplex penthouses located in the Gate Towers sky-bridge. The sports courts and swimming pools can be seen below. Courtesy Alda

In pictures: Aldar’s Gate Towers Penthouse Collection on Reem Island

Aldar launched its Gate Towers Penthouse Collection at Cityscape Abu Dhabi. The launch features 21 penthouses spanning the skybridge, with each having a private indoor pool and incredible views.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National