Bahraini banks in “very strong financial position"

Manama, July 4 (BNA): The chief executive of Bahrain Association of Banks (BAB) is striking back and assures that Bahraini banks are in a “very strong financial position led by the Central Bank of Bahrain (CBB) financial and monetary policies, along with the keenness of Bahraini banks to apply prudent best financial and banking practices, and adopt the administrative and technical methods to ensure their financial stability, sustainability and profit growth. Dr. Waheed Al Qassim said that Bahrain is continuously implementing regulations to maintain financial stability, stressing that the financial and economic support by KSA, UAE and Kuwait is contributing effectively to achieve this objective, which will undoubtedly reflect a positive credit ratings of Bahrain. Dr. Al Qassim pointed to Moody’s Corporation and Fitch Ratings, nationally recognised statistical rating organisations, announced that the tripartite Gulf support will boost Bahrain economy in terms of credit rating and financing pressures and ensure Bahrain stabilised financial condition with its steady improvements. He said that the International monetary Fund (IMF) praised Bahrain financial sector’s stability by dint of large capital reserves, capital adequacy and assets quality. He noted the CBB’s continued commitment to maintaining an exchange rate peg at 0.376 Bahraini dinars to the US dollar. The exchange rate peg provides an anchor for monetary, which contributes to controlling inflation and protecting the external value of currency. CEO of BAB assures that Bahrain’s financial ratios indicate consistent positive financial health, where local liquidity to expand in a stable manner to keep inflation at low levels, pointing to Bahraini dinar improved value against major international currencies; the pound sterling, euro, yen and Swiss franc due to dollar high exchange rate. This would increase Bahraini exports value and reduce imports value and thus have a positive impact on the Kingdom’s trade balance. Dr. Al Qassim reviewed strong indicators on banking condition improvement, including the remarkable rise in the assets of Bahrain banking system from $187 billion in December 2017 to $190 billion in May 2018, an increase of $3 billion. Assets of retail banks operating in the local market rose from BD31.4 billion in December 2017 to BD32.4 billion in May 2018, an increase of BD1 billion in five months. The facilities’ value provided by banks for local economic activities increased by BD580 million in five months only, reflecting a major increase in the role played by banks in driving economic growth in non-oil sectors in Bahrain. Total facilities granted by the banking sector for economic activities and individuals amounted to 9.1 billion dinars by the end of May 2018.