Page 57 - Annual Report 2021 EN

/ 57
Credit Risk and related matters
In June 2021, the QFCRA issued a Consultation Paper on
the proposed Banking Business Prudential (Credit Risk
and Related Matters) Amendments Rules 2021. The
QFCRA sought to assess the impact of these proposals
on conventional QFC authorised banks (QFC banks).
The prudential banking framework that applies to
banks is based on the international framework for
banks developed by the BCBS. As part of its ongoing
work to implement the BCBS standards and guidance,
the QFCRA proposed to update the Banking Business
Prudential Rules 2014 (BANK) to include the following:
a. Updated Rules taking account of the revised
BCBS standardised approach for credit risk
as well as new rule requirements related to
the credit risk management framework;
b. New rules taking account of the BCBS prudential
treatment for equity investment in funds;
c. New rules for the categorisation of
problem assets and provisioning;
d. New rules for the classification of items
between the banking and trading books; and
e. Updated rules related to the large
exposures’ framework
T ABLE OF C ONTENT S
External Auditor Data Protection
Notification Requirements
Counterparty Credit Risk and Exposures In December 2021, the Qatar Financial Centre
to Central Counterparties In December 2021, the QFCRA consulted on a minor Authority (QFCA) issued the new QFC Data Protection
— amendment to the auditor provisions in the General Rule Regulations 2021 and Data Protection Rules
In December 2021, the QFCRA issued a Consultation 2006 (GENE) to clarify the notification requirements 2021, which updated the 2005 Data Protection
Paper on the proposed Banking Business Prudential for when the appointment of an auditor ends. The QFC Regulations and the 2005 Data Protection Rules.
(Counterparty Credit Risk) and Miscellaneous Financial Services Regulations (FSR) requires an auditor The QFCRA provided feedback as part of the QFCA’s
Amendments Rules 2022. The proposals, based on to notify the QFCRA about dismissal, non-renewal or extensive public consultation proposals to introduce
the latest BCBS standards, centred on new prudential resignation. The QFCRA proposed to clarify the FSR new provisions to bring the QFC’s data protection
requirements for: requirement in GENE so that the requirement applies regime in line with international best practices.
to both auditors and the authorised firm, and that
a. counterparty credit risk; and
auditors are clear about the circumstances where the The updated Regulations have established the Data
b. exposures to central counterparties.
notification requirement applies. Protection Office (DPO) as an independent QFC
The QFCRA’s consultation and proposed quantitative Institution and created the role of Commissioner.
impact study will assess the impact of these In addition, the Regulations provide for the following:
proposals on conventional QFC banks before
a. Enhancing the international transfer mechanisms
the final rules are implemented in 2022.
for Personal Data;
b. Expanding Data Subject rights to include portability
In December 2021, the Islamic Financial Services
and rights related to automated decision-making,
Board (IFSB) published its new standard on
including profiling; and
“Revised Capital Adequacy Standard for Institutions
c. Introducing the concept of privacy by design
Offering Islamic Financial Services” (IFSB-23).
and default.
The QFCRA will review the credit risk framework
in the Islamic Banking Business Prudential Rules The new data protection legislation comes into
2015 according to IFSB-23 on the credit risk effect on 19 June 2022 and the QFCRA will be
capital requirement applicable to Islamic banks. collaborating closely with the Commissioner, the
DPO and authorised firms to ensure that all Personal
Data Processing complies with the Regulations
and Rules from the commencement date.