Qatar Central Bank has announced a series of measures to support financial stability as geopolitical tensions involving the United States, Israel and Iran weigh on regional markets. The bank will allow lenders to defer principal and interest payments for up to three months for affected borrowers, in line with internal policies and supervisory guidance.

In addition to loan deferrals, the central bank introduced enhanced liquidity support, including unlimited local currency repurchase facilities backed by eligible securities and a new term repurchase facility of up to three months. It also reduced the reserve requirement on deposits to 3.5 percent from 4.5 percent to inject additional liquidity into the banking system.

The central bank said the financial system remains strong, with ample liquidity, capital levels well above regulatory requirements, and solid provisions against credit risk. It added that banks continue to hold substantial domestic and foreign currency liquidity and are well positioned to meet customer demand and withstand short term funding pressures despite ongoing external uncertainty.