Segregation of Qatari Islamic, conventional banking will reduce risk of contagion: IMF
According to the International Monetary Fund, complete segregation of Islamic and conventional banking in Qatar “should reduce the risk of contagion” from one segment to the other in case banking troubles arise in either one.
In February last year, Qatar Central Bank had managed local conventional banks that have Islamic windows, to stop opening new Islamic branches, accepting Islamic deposits, and extending new Islamic financing from 2012. In QCB’s concept, the overlapping nature of non-Islamic and Islamic activities makes banks’ risk management and compliance with prudential requirements more complex.
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