Page 86 - Annual Report 2017

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POLICY

The Basel Committee on Banking Supervision
Policy and Legislative Counsel provides a forum for regular co-operation on
banking supervisory matters. Its objective is to
enhance understanding of key supervisory issues
Regulatory policy initiatives and improve the quality of banking supervision
worldwide.
The key focus of work for the Policy and Legislative Counsel
departments of the Regulatory Authority in 2017 was to finalise the Over the course of the last four years, the Regulatory Authority has
prudential framework (securitisation) for conventional and Islamic focused on advancing and shaping its prudential banking frame-
banks. work to align with the published international regulatory standards
of the Basel Committee on Banking Supervision (BCBS) and the
Islamic Financial Services Board (IFSB) and the prudential frame-
Financial Services Regulations work of the Qatar Central Bank.
Principles of Good Regulation: Article 13 (6)
In that connection, following a comprehensive review of the
“The Regulatory Authority shall have regard to… prudential framework for securitisation in 2016, the Regulatory
the need to balance the burdens and restrictions Authority introduced rule amendments in March 2017 for sukuk and
on firms with the benefit of regulation.” conventional securitisation. The upgraded framework requires firms
to address the risks associated with securitisation and to ensure
that sufficient regulatory capital is held against any associated
The departments also developed draft rules which included exten- credit risk.
sive public consultation on a strengthened prudential liquidity risk
framework for conventional and Islamic banks. Other policy pro-
posals included public consultation on draft rules for a protected Prudential banking framework – liquidity
reporting “whistle-blowing” framework.
Throughout 2017, the Regulatory Authority undertook an extensive
review of its prudential liquidity risk framework for conventional
and Islamic authorised QFC banks. The review involved continu-
ous engagement with banks through a combination of prudential
return field testing and public consultation on draft rule amend-
ments. In March 2017, Consultation Paper 2017/01 was issued
and proposed a liquidity risk framework aligned to the imple-
mentation of standards published by the BCBS and the IFSB.
The proposals contained new quantitative liquidity risk requirements
for a Liquidity Coverage Ratio and a Net Stable Funding Ratio that
are focused on internationally active banks which are systemically
important.