* Sees risks in mixing conventional, Islamic banking
* Working on capital adequacy rules for Islamic lenders
DUBAI/DOHA, Feb 9 The Qatar central bank said it
saw higher risks from conventional lenders operating Islamic
units, clarifying a recent ruling which asked commercial banks
in the Gulf state to close their sharia-compliant operations.
Qatar's central bank earlier in the week asked conventional
lenders to close down their Islamic operations amid worries of
overlap between the two, in a surprise move that boosted shares
of Islamic lenders in the country. [ID:nLDE71503A]
The central bank issued a circular over the weekend
providing few specifics on the move and had conventional banks
such as HSBC (HSBA.L) saying it would seek clarification on the
"The directives issued recently ... are based on issues
related to supervision and monitoring as well as monetary
policy," the central bank said in a statement carried by state
news agency QNA.
The central bank said mixing Islamic and conventional
banking could lead to difficulties in financial reporting,
adding that the authority was working towards creating separate
capital adequacy rules for Islamic lenders in Qatar.
The order is effective immediately but gave lenders a grace
period until Dec. 31 to comply with the new rules.
(Writing by Dinesh Nair)