Bahrain’s Central Bank Reports Solid Liquidity and Credit Growth at Second Board Meeting of 2026
Manama — The Central Bank of Bahrain (CBB) held its second Board of Directors meeting for 2026 on 21 June, chaired by Mr. Hassan Khalifa Al Jalahma, with the Board reviewing the bank’s performance and the kingdom’s latest monetary and banking indicators.
CBB Governor H.E. Mr. Khalid Humaidan presented updates on the bank’s key priorities, including its loan deferral and liquidity support program. The Board also reviewed the CBB’s performance report and recent achievements, among them a currency swap agreement signed with the Central Bank of the United Arab Emirates, and was briefed on the CBB’s Artificial Intelligence strategy.
Liquidity and credit expand
The kingdom’s money supply (M3) rose by BD 1.4 billion to BD 18.1 billion at the end of April 2026, compared with the same period a year earlier.
Total private deposits at retail banks reached BD 14.7 billion at the end of April 2026, up 8.8% year on year. The outstanding balance of total loans and credit facilities extended to resident economic sectors increased 8.5% to BD 13.4 billion, with the business sector accounting for 40.8% and the personal sector 46.6% of the total.
The consolidated balance sheet of the banking system, covering both retail and wholesale banks, grew 3.8% to USD 254.0 billion at the end of April 2026.
Payments and capital strength
Point-of-sale (POS) transactions for January to April 2026 totaled 82.3 million, up 1.0% year on year, with 75.5% completed using contactless cards. The total value of these transactions reached BD 1.5 billion, of which 52.3% were contactless, a decline of 8.1% from the same period in 2025.
The banking sector’s capital adequacy ratio stood at 20.8% in the first quarter of 2026, up from 20.6% a year earlier. By segment, the ratio reached 25.2% for conventional retail banks, 17.4% for conventional wholesale banks, 25.7% for Islamic retail banks, and 17.3% for Islamic wholesale banks.
Investment funds grow
The number of registered Collective Investment Undertakings (CIUs) reached 1,747 as of March 2026, up 0.58% from 1,737 a year earlier. The net asset value of these funds stood at USD 10.929 billion in the first quarter of 2026. The net asset value of Shari’a-compliant CIUs rose 24.65% to USD 2.498 billion, from USD 2.004 billion a year earlier.
Source: Central Bank of Bahrain, 21 June 2026.
