Bahrain's banking system balance sheet climbed to $250.3 billion by the end of January 2026, marking a 1.6 per cent year-on-year increase despite regional headwinds, the Central Bank of Bahrain (CBB) revealed yesterday.
The growth in total assets was supported by a 6.2pc jump in private deposits at retail banks, which reached BD14.1bn, underscoring continued confidence in the kingdom’s financial stability.
The figures were reviewed during the CBB’s first board of directors meeting of the year, chaired by Hassan Al Jalahma. The board commenced the session by strongly condemning and denouncing recent Iranian attacks on civilian infrastructure and vital facilities in Bahrain, affirming that the kingdom’s security remains safeguarded under the leadership of His Majesty King Hamad and the directives of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister.
The board commended the banking sector for maintaining robust financial soundness indicators. Capital adequacy ratios reached 21.8pc in the final quarter of 2025, up from 21.2pc a year earlier. Conventional retail banks led with a ratio of 27.5pc, while Islamic retail banks stood at 27.7pc.
Since the onset of regional developments, the CBB has intensified supervisory measures in co-ordination with banks and insurance firms to ensure the uninterrupted delivery of financial services.
A look at key indicators shows that M3, the broadest measure of money supply, increased by BD0.7bn to reach BD16.7bn at the end of January, a significant rise from the previous year.
Total loans and credit facilities to resident sectors grew by 5.4pc to BD12.9bn. The personal sector accounted for 48.4pc of this total, while the business sector represented 39.7pc.
The net asset value (NAV) of Sharia-compliant Collective Investment Undertakings (CIUs) saw a sharp 21.45pc increase, reaching $2.338bn.
Point of Sale (POS) transactions totalled 19.8 million in January. While transaction volume saw a 6.5pc decline compared to last year, contactless payments remained dominant, accounting for 73.6pc of all transactions.
The board also approved the CBB’s audited financial statements for 2025 and reviewed performance reports for the current year up to February 2026.
avinash@gdnmedia.bh
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