The Islamic branches of the traditional banks are in the process of winding up their operations in keeping with the directives issued by the Qatar Central Bank (QCB). They have closed the accounts of nearly 30% of their clients, says a report published in a local Arabic daily.
About 90% of such account holders have preferred to transfer their accounts to regular Islamic banks instead of opting for the non-Islamic banking system.
However 50% of the Islamic accounts in the Qatar National bank have been transferred to its traditional banking system including government and quasi-government portfolios belonging to public establishments, the report said.
Quoting reliable sources the report says that the banks are hastening the process of closing down their Islamic banking because only six months remain as per the time limit fixed by the QCB. It is very unlikely that these banks will seek an extension of the time limit because that will entail additional financial burden in terms of salaries and overheads while they have with effect from last February seized their Islamic operations and consequently they do not have any revenue from it. The staff as well as the premises of the Islamic branches will become a part of the existing traditional banks, says the report.
source: Gulf Times