The financial sector of Bahrain continues to show steady growth as the Central Bank of Bahrain (CBB) held its fourth board meeting of 2025. The session, chaired by Hassan Khalifa Al Jalahma, reviewed key financial indicators and progress across the banking industry. The meeting underscored the resilience of the Bahrain financial sector amid regional and global shifts.
The Board examined CBB’s financial performance up to September and discussed initiatives aimed at modernizing Bahrain’s payment systems. Members also reviewed updates on the GP15 Graduate Development Program, a key step toward building national talent in the banking field.
As of August, money supply stood at BD 16.3 billion, slightly lower than last year. Retail bank deposits rose to BD 13.5 billion, marking a 0.3% increase from August 2024. Total loans and credit facilities expanded to BD 12.6 billion, growing 4% year-on-year. The business sector held 40.9% of these loans, while the personal sector accounted for 48.8%.
The total balance sheet for Bahrain’s banking system climbed to $246.8 billion by the end of August, up 1.5% from a year earlier. These figures reflect the continued expansion of the Bahrain financial sector despite a challenging global environment.
Point-of-sale transactions surged during the first eight months of 2025, reaching 170.4 million operations—22.2% higher than in 2024. Contactless payments dominated, representing over three-quarters of all transactions. Their total value reached BD 3.4 billion, an increase of 13.6%.
The CBB also reported a capital adequacy ratio of 20.3% in the second quarter of 2025, confirming the banking sector’s strong capital position. Conventional retail banks recorded the highest ratio at 29.7%, while Islamic banks maintained healthy levels above 20%.
The number of Collective Investment Undertakings rose to 1,733 by June 2025, up from 1,707 a year earlier. However, their total net asset value fell slightly to $10.9 billion. Sharia-compliant funds grew by 13.7%, reflecting investor interest in ethical finance options.
Officials emphasized that the CBB remains committed to supporting economic stability and innovation. They noted that upcoming reforms will strengthen regulatory frameworks and enhance digital payment systems. The outlook for the Bahrain financial sector remains positive, supported by steady growth in loans, investments, and technology adoption.
