Saudi banks told not to increase Qatar exposure: report

Saudi central bank, Saudi Arabian Monetary Authority (SAMA), has ordered local lenders not to increase their exposure to any Qatari clients amid the GCC-Qatar rift, Bloomberg reported on Thursday citing unnamed sources.

The order to refrain from increasing exposure will include treasury investments, loans, letters of credit and trade-finance facilities.

Some banks in the U.A.E. and Bahrain have already begun cutting their exposure to Qatar, the report added citing some other sources.

SAMA recently issued directives to local lenders to stop dealing in the Qatari riyal, Argaam reported.

Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed diplomatic relations with Qatar on Monday, accusing Qatar of supporting terrorist groups.

As a result they were cutting links to the country by land, sea and air. Other countries, including Yemen, later joined the four-nation bloc in severing ties with Qatar.