HSBC Holdings PLC is seeking clarification of an order by Qatar's central bank requiring non-Islamic lenders in the nation to end services that comply with Shariah law.
HSBC Amanah, the Islamic banking unit of Europe's largest bank, is in discussions with the central bank "to find a workable solution," the company said in an e-mail. HSBC has had operations in Qatar since 1954 "and has established strong and positive relations with the regulators," the statement said.
"The Qatar Central Bank's ruling of forcing conventional banks to cease their Islamic banking opportunities will prove detrimental to future earnings of a few conventional banks, whilst provides further market share opportunity for the dedicated Islamic banks," Omair Ansari, equity strategist at Dubai-based Gulfmena Alternative Investments, said Monday.
The Feb. 1 order called for non-Shariah-compliant banks to close Islamic branches by yearend and stop taking deposits in those units immediately.
