Dubai: Qatar’s banking sector is fast shaking off the impact of the global economic crisis to emerge as the strongest among the regional industry peers, according to rating agencies and banking sector analysts.

The strength of the system is evident in the rising liquidity levels and improving asset quality. The domestic banking system is once again flush with cash that the government has begun to issue Qatari riyal-denominated bonds to soak up some of the surplus liquidity.

“Qatari banks have emerged relatively unscathed from the global financial crisis and regional downturn displaying strong financial profiles, although high credit risks, taken during the lending boom, continue to pose some challenges for the sector,” Fitch Ratings said in a recent report. [Read More]