DOHA: Asked to close down their Islamic banking arms by 2011-end, conventional banks want to continue to manage the loan portfolios of the concerned units until their maturity.
These portfolios are proposed to be managed independently of the bank’s mainstream conventional operations, as a special case.
Conventional banks are, though, willing to convert their Islamic banking branches into commercial ones after the closure deadline of December 31, as directed by the Qatar Central Bank (QCB).
Concerned banks are gearing up to soon make a joint plea with the above proposals to the banking regulator, the QCB.
Individual banks are busy making extensive reports of their Islamic banking activities.
The banks want the QCB to rid them of their liabilities by the closure deadline of December 31 but at the same time want to keep managing their assets (loans) until their maturity ends.
The banks want the customers of their Islamic units to be given the choice to either transfer their accounts to Islamic banks after the closure of the Islamic arms or shift them to the conventional operations of the same bank.