Growing money supply and transactions, as evidenced by Central Bank of Bahrain (CBB) data, point to a strengthening economy in the first 10 months of the year.

Money supply in its broad sense (M3), totalled BD15.7 billion at the end of October 2023, an increase of 3.7 per cent compared to the level as of end-October 2022, the regulator said in a statement after its fourth board of directors meeting for the year 2023.

As for retail banks, total private deposits increased to BD13.9bn at the end of August 2023, an increase of 3.1pc compared to end-August 2022.

Chaired by Hassan Al Jalahma, the board reviewed key monetary and banking developments for the period till end-October 2023, developments in the financial sector during the third quarter of 2023, progress made regarding the Financial Services Sector Development Strategy and investment policy for the year 2024.

It noted that total private deposits with retail banks increased to BD13.9bn as of end-October 2023, an increase of 4.1pc compared to end-October 2022.

The outstanding balance of total loans and credit facilities extended to resident economic sectors increased to BD11.6bn at of end-October 2023, an increase of 2pc compared to end-October 2022, with the business sector accounting for 43.6pc and the personal sector claiming 50.3pc of total loans and credit facilities.

The balance sheet of the banking system (retail banks and wholesale sector banks) increased to $229.4bn at the end of October 2023, an increase of 3.1pc compared to the end of October 2022.

Point of sale (POS) data indicated an increase in the number of transactions during the first ten months of 2023 (January-October 2023), totalling 151 million transactions (77.5pc of which were contactless), an increase of 13.1pc compared to the same period in 2022.

The total value of POS transactions in the kingdom during January-October 2023 totalled BD3.4bn, (50.5pc of them contactless), an increase of 7pc compared to the same period in 2022.

Review of the data shows the banking sector maintained a high level of capital adequacy and liquidity, as the capital adequacy ratio of the banking sector amounted to 19.4pc in Q3-2023.

The capital adequacy ratio was 21.7pc for conventional retail banks, 17.2pc for conventional wholesale banks, 20.5pc for Islamic retail banks, and 17.9pc for Islamic wholesale banks.

The number of registered collective investment undertakings (CIUs) was 1,672 as of end-October 2023.

The net asset value (NAV) of the CIUs decreased from $11.5bn in Q3-2022 to $10.9bn in Q3-2023, reflecting a drop of 5.2pc.

However, the NAV of overseas domiciled CIUs increased from $6bn in Q3-2022 to $6.6bn in Q3-2023, up 10pc.

Moreover, the NAV of the Sharia-compliant CIUs increased 41.7pc from $1.2bn in Q3-2022 to $1.7bn in Q3-2023.

 

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