Qatar Central Bank Gov. Abdullah bin Saoud Al Thani said the country can support its banks despite its Gulf neighbors severing ties with the gas-rich nation, Bloomberg News reported Oct. 4.
In a statement, Al Thani said the central bank regularly conducts stress tests of its domestic banks. The nation has a vast sovereign wealth fund and foreign currency reserves that can be used to support its banking sector, Bloomberg noted.
Qatar has been forced to spend heavily to support its banks and defend its currency against the U.S. dollar after Saudi Arabia, the United Arab Emirates, Bahrain and Egypt launched a boycott in June. The central bank noted that its lenders have adequate capital and access to liquidity, and that they are profitable, ensuring that they are not at "high risk."