Doha BankDoha Bank

"The type of development witnessed in Qatar is a model of public and private interests converging for the benefit of the whole country. There was pro-activity on the part of Qatar's government authorities to develop significant public- private partnerships in Qatar to protect the economy and its banking system from the consequences of the current global financial crisis," he said.

R Seetharaman was speaking at the International Arab Banking Summit 2009 held on June 25 and 26, 2009, in London as one of keynote speakers at the event in which he addressed the post financial crisis strategies.

R Seetharaman pointed out that the Qatar Investment AuthorityQatar Investment Authority last year offered to invest in new shares between 10 percent and 20 percent of the capital of the main Qatari banks. This was followed by an equally prescient decision by the Government to acquire the Qatari banks' portfolios of local shares listed on the Doha Securities Market (DSM) at their book value in the banks' accounts at the end of February 2009 thereby simultaneously stabilising the local bourse while improving confidence in the banks ongoing stability.

Subsequent to this by end of May 2009 the Government has offered to buy up to QR15bn ($4.12bn) of Qatari banks' real estate assets at a sale price equivalent to the net value of property loans and investments, he said.

"The new world order will redefine economic advantage in terms of such a farsighted distribution of wealth, gross welfare and a balanced economy," he said.

Seetharaman also noted that "The global banking sector has witnessed the bankruptcy of a number of major financial institutions in the US and Europe and international regulators' stress tests evidencing that many of the remaining banks are now unable to meet their traditional commitments as safe havens for depositors."

He added that Qatari banks continue to enjoy good liquidity and remain a stable financial presence in the economy. Collectively they registered annual increases in net profits of more than 22.7 percent and their total assets witness increase of 40.1 percent while the overall capital adequacy ratio for Qatari banks, in accordance with Basel standards, stands at 15 percent. This performance is amongst the best of any financial sector in the world, Seetharaman said.

The ongoing global financial crisis, he noted, is indeed an opportunity for commodity driven economies like Qatar to showcase their core strengths and emerge from this crisis stronger. It positions Qatar as a model for effective public-private partnership and the highest standards of governance which all converge in the Qatar National Vision 2030.

© The Peninsula 2009

 

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