Essays on Qatar Central Bank Role Case Study

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The paper 'Qatar Central Bank Role' is a great example of a Financing and Accounting Case Study. The Central Bank is an institution that is predominantly responsible for the currency issuance and printing, control of the currency through limiting the money supply in a particular country. On the other hand, it does this by setting the standards for interest rates in these financial institutions. Qatar's Central Banks are given the supervisory and regulative mandate of other financial institutions in Qatar. The paper below reviews the fundamental role of Qatar's Central Banks in its supervising and monitoring roles of the other financial institution in Qatar. Qatar’ s Central Bank is mandated with the r monitoring, and supervision responsibility of the other financial institution within the country in order to maintain a safe and stable financial institution in the country's financial sector.

This ensures that trust between the public and the wider financial markets in the country. Qatar’ s Central Bank provides a comprehensive overview of the country's banking and financial sector in general with the goals of supervising and controlling their financial policies.

Qatar’ s Central Bank boasts of vast knowledge and exposure in the country's banking and financial services industry (Singh, n.d. ). Though Qatar’ s Central Bank's awareness of the financial and banking operations, systems, products, and services enable it to come up with an effective monitor and supervising policies to help it in its responsibilities in the country's financial markets. In this case, Qatar’ s Central Bank assesses and supervises financial institutions and banks’ ensuring that they adhere to the set articulated control and supervision policies and regulations. Off-site supervision Qatar’ s Central Bank's role in supervision and controlling of the financial institution includes off-site supervision.

Its Off-site Supervision Department is tasked with monitoring banks and other financial institutions in the country in order to ensure the financial soundness of these institutions. This department under Qatar’ s Central Bank ensures effectiveness in the enforced supervision and regulation policies. In the course of this task, this department carries out monitoring activities on the risk profiles, financial performance evaluation, and preparation of off-site risk reports, follow-ups the institution compliance (Neuenkirch, 2012). It also takes effective measures on the financial institutions that are found not to abide by these set policies and lastly recommend enforcement action to these financial institutions. This department has taken up various quantitative tools that help it do discharge these functions effectively.

Some of the significant tools used by the Off-site Supervision Department under Qatar’ s Central Bank are the CAMELS-BCOM rating system, profitability, large financial exposures, asset quality, liquidity, risk concentration, market risks, related party transactions and interest rates (Ehrmann, Eijffinger, & Fratzscher, 2012). On the other hand, this department uses the qualitative information in its monitoring and supervisory responsibility these includes; corporate governance, risk management from the on-site inspection reports, internal controls, reports of subsidiaries and supervisors operating abroad, external audit reports.

On the other hand, it uses the Memorandum of Understanding, frequent dialogue, and meetings with senior management from these institutions.

References

Ehrmann, M., Eijffinger, S., & Fratzscher, M. (2012). The Role of Central Bank Transparency for Guiding Private Sector Forecasts*. The Scandinavian Journal Of Economics, no-no. http://dx.doi.org/10.1111/j.1467-9442.2012.01706.x

Khiaonarong, T. Payment Systems Efficiency, Policy Approaches, and the Role of the Central Bank. SSRN Electronic Journal. http://dx.doi.org/10.2139/ssrn.444480

Khiaonarong, T. Payment Systems Efficiency, Policy Approaches, and the Role of the Central Bank. SSRN Electronic Journal. http://dx.doi.org/10.2139/ssrn.444480

Mohit, B. (2013). QALB: Qatar Arabic language bank. Qatar Foundation Annual Research Forum Proceedings, (2013), ICTP 032. http://dx.doi.org/10.5339/qfarf.2013.ictp-032

Neuenkirch, M. (2012). Managing financial market expectations: The role of central bank transparency and central bank communication. European Journal Of Political Economy, 28(1), 1-13. http://dx.doi.org/10.1016/j.ejpoleco.2011.07.003

Singh, R. The Role of Central Bank in Crisis Management. SSRN Electronic Journal. http://dx.doi.org/10.2139/ssrn.156761

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