suspended most connections with Qatar, in an unprecedented move designed to punish it for ties with Iran and Islamist groups in the region.Qatari banks are also seeking to lure money into their coffers to meet a Dec. 31 central bank deadline of matching loans to deposits. The hunt for cash has driven the local inter-bank rate to the region’s highest.Efforts are being undermined because loans are rising faster than in Saudi Arabia and the U.A.E. as Qatar continues spending to finance building projects for the soccer World Cup.The average loan-to-deposit ratio at Qatari lenders was 111.6 percent as of April. Saudi Arabia’s ratio was 87.4 percent, while it was 99.4 percent in the U.A.E. Doha Bank also operates a branch in the U.A.E.Operations are also likely to be hampered.

Source: thestar June 06, 2017 06:11 UTC