Manama, October 10 (BNA) The Board of Directors of the Central Bank of Bahrain held its fourth meeting for the year 2021, headed by Mr. Hassan Khalifa Al Jalahma, on Sunday, October 10, 2021.
The Board was briefed on the financial sector developments for the third quarter of 2021, including the report on the main economic, monetary and banking indicators. The N3 money supply amounted to about BD 14.6 billion at the end of August 2021. The private sector deposits for retail banks amounted to BD 12.7 billion at the end of August 2021. The total loans and credit for resident economic sectors reached BD 10.8 billion at the end in August 2021 compared to 10.6 BD 1 billion at the end of May 2021, an increase of 1.1%, with business loans at 50.6%, and personal loans at 45.4% of the total loans and credit facilities.
Point of sale (POS) data showed an increase in the number of transactions over the past three months (June – August 2021), with a total of 30.7 million transactions (65.9% contactless), an increase of 51.9% compared to the same period in 2020. The total value of POS transactions was In Bahrain 753.5 million dinars (39.8% contactless), an increase of 35.0% compared to the same period in 2020.
The banking sector maintained a high level of capital adequacy and liquidity, as the capital adequacy ratio of the banking sector reached 18.8% in the second quarter of 2021 compared to 18.5% in the first quarter of 2021, which is higher than the minimum regulatory requirements. of 12.5%. The capital adequacy ratio for the various banking sectors in the second quarter of 2021 was 20.5% for conventional retail banks, 17.6% for conventional wholesale banks, 21.6% for Islamic retail banks, and 16.4% for Islamic wholesale banks.
These indicators reflect the recovery of economic activities in the Kingdom of Bahrain with real economic growth of 5.7% in the second quarter of 2021 compared to the same period in 2020. The financial sector represents 17.3% of the GDP.
The Council was also briefed on the initiatives of the Central Bank of Bahrain for digital transformation in the financial sector, which included the eKYC project and the Central Bank of Bahrain is working to cover all financial institutions licensed in the eKYC project. The new electronic check, which will be launched later this month, is supposed to make the check settlement process easier. This service has the same legal and financial features as paper checks.
The council was also briefed on the plan to develop payment and settlement systems in the Kingdom, especially the expansion of contactless payment channels. The council also reviewed plans to provide digital solutions for vehicle insurance.
The Council expressed its appreciation and satisfaction with the recovery of economic activities in recent months, which came as a result of the patronage of His Majesty King Hamad bin Isa Al Khalifa and his directives to take all measures to protect Bahraini citizens and economic sectors from Covid 19. The epidemic that the government of Bahrain, led by His Royal Highness Prince Salman bin Hamad, worked Al Khalifa, the Crown Prince, has been diligently implementing it through the financial support package provided over the past nineteen months to contain the pandemic.
NS