Qatar’s Central Bank published rules limiting the size and maturity of personal loans as well as the interest banks may charge, according to a circular posted on its website on Thursday.
Qatari citizens may receive loans no larger than QR2m and maturing in no more than six years, the bank said in the circular dated April 10.
The loan restrictions were previously reported by Al Sharq newspaper and other local newspapers on April 11.
Qatar’s new regulations on personal borrowings may slow growth and profits at banks such as Commercial Bank of Qatar and Doha Bank, according to Credit Suisse Group.
Commercial Bank, the nation’s second-biggest bank by assets, and Doha Bank, the third-largest lender, had their stock recommendations cut to “neutral” from “outperform,” Mohamad Hawa, London-based research analyst at Credit Suisse, wrote in a report on Wednesday.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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