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Manama, March 27 (BNA) The Board of Directors of the Central Bank of Bahrain held its first meeting for the year 2022 under the chairmanship of Hassan Khalifa Al Jalahma on Sunday, March 27, 2022.
The Council reviewed the topics on the agenda, and approved the annual report of the Central Bank of Bahrain and audited financial statements for the year 2021, in addition to reviewing the activities of the Central Bank of Bahrain for the year 2021.
The Board also reviewed the performance report of the Central Bank of Bahrain and the developments of the financial sector for the first quarter of 2022 and the financial performance report of the Central Bank of Bahrain until the end of February 2022.
During the meeting, the Board also reviewed the report of the main economic, monetary and banking indicators for the year 2021. In fact, the data of recent months showed the stability of liquidity, as the money supply in its broad sense amounted to N3 (N2 + government deposits) 14.9 billion Bahraini dinars. At the end of January 2022, an increase of 6.4% compared to the end of January 2021. As for retail banks, total private deposits increased to 12.9 billion BD at the end of January 2022, an increase of 5.6% compared to the end of January. 2021. The report also indicated that the outstanding balance of the total loans and credit facilities provided to the resident economic sectors increased to 10.9 billion Bahraini dinars at the end of January 2022, an increase of 3.8% compared to the end of January 2021, with the business sector accounting. 48.6% and the personal sector 47.1% of the total loans and credit facilities.
Point of sale (POS) data indicated an increase in the number of transactions during the fourth quarter of 2021 (October 2021 – December 2021), with a total of 38.0 million transactions (70.7% of which were via contactless cards), an increase of 51.5% compared to the same period From 2020. The total value of POS transactions in Bahrain during the same period (October 2021 – December 2021) amounted to 974.0 million Bahraini dinars (44.0% of which were through contactless cards), during the fourth quarter of 2021, an increase of 41.9% compared to the same period from the year 2020.
The banking sector maintained a high level of capital adequacy and liquidity, as the capital adequacy ratio of the banking sector reached 18.6% in the fourth quarter of 2021 compared to 18.3% in the third quarter of 2021, which is higher than the minimum limit. 12.5% is required by the Central Bank of Bahrain. The capital adequacy ratio for the various banking sectors in the fourth quarter of 2021 was 20.6% for conventional retail banks, 17.1% for conventional wholesale banks, 21.2% for Islamic retail banks, and 15.8% for Islamic wholesale banks.
These indicators are in line with the return of activity to all economic sectors in the Kingdom, and indicate the stability of the financial sector and its ability to serve the national economy.
The Chairman and members of the Board of Directors expressed their thanks and appreciation to the Kingdom’s leadership for their support of the Central Bank of Bahrain and the efforts and measures taken to contain the repercussions of the Corona virus, including the economic recovery plan that contributed to the return of normal activities to all sectors of the economy.
The Council also expressed its appreciation for the efforts of the banking sector during the past year by providing support and assistance to reduce debt burdens on individuals and companies. The Board concluded its meeting by expressing its appreciation to the employees of the Central Bank of Bahrain for their efforts during this year, which contributed to maintaining financial stability and developing the financial sector.
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