Strategic Goal 3: Strengthening market infrastructure

Deposit insurance is one component of a financial system safety net that promotes financial stability. Deposit insurance has been implemented in many countries to protect (either fully or in part) bank depositors from losses that can be caused by a bank’s inability to meet its obligations.

Going forward, steps will be taken to implement a depositor protection scheme in Qatar as required by the QCB Law. International experience suggests that best practice deposit insurance promotes transparency, enhances consumer and investor awareness and provides equal opportunities for all participants. At a later stage, consideration will be given to developing a risk-based premium mechanism.

Finally, an Islamic deposit insurance framework based on Shari’a principles (Takaful) may be required as a consequence of the increasing scale of operations of the Islamic banking sector.