A decision by Qatar 's neighbouring governments to cut economic and diplomatic ties is a blow for Qatari banks , which are already stretched by financing the $ 200bn trillion World Cup , declining cash reserves and higher interest rates . The decision puts foreign deposits at risk of withdrawal – particularly those from the six - nation financial Cooperation Council . Although Qatar has major holdings in Barclays , Credit Suisse and Deutsche Bank , its banking system relies heavily on foreign cash . Non - resident deposits made up 24 % of deposits in Qatar 's 18 lenders in April . “ If it lasts more than a few days we are likely to see rapid increases in risk pricing , " warned Emad Mostaque of Capricorn bank Managers .
A decision by Qatar's neighbouring nations to cut economic and diplomatic ties is a blow for Qatari banks, which are already stretched by financing the $200bn 2022 World Cup, declining cash reserves and higher interest rates. The decision puts foreign deposits at risk of withdrawal – particularly those from the six-nation Gulf Cooperation Council. Although Qatar has major holdings in Barclays, Credit Suisse and Deutsche Bank, its banking system relies heavily on foreign cash. Non-resident deposits made up 24% of deposits in Qatar's 18 lenders in April. “If it lasts more than a few days we are likely to see rapid increases in risk pricing," warned Emad Mostaque of Capricorn Fund Managers.