The Central Bank of Bahrain reported rising bank lending and deposits and higher capital adequacy in an update on its third board meeting of 2026. Investment fund assets also increased, while point of sale transaction volumes grew despite a decline in their total value. Loans and credit facilities to resident economic sectors reached BHD 13.6 billion at the end of August 2026, up 7.8% from August 2025. Private deposits at retail banks increased 8.0% to BHD 14.6 billion over the same period. By contrast, the combined balance sheet of retail and wholesale banks expanded 0.1% to USD 247.0 billion. The banking sector’s capital adequacy ratio rose to 21.3% in the second quarter of 2026 from 20.2% a year earlier. The net asset value of registered collective investment undertakings increased 5.41% to USD 11.505 billion in the second quarter of 2026 compared with a year earlier. Within that total, assets of Sharia compliant undertakings rose 42.14% to USD 2.928 billion. Point of sale transactions totaled 181.7 million between January and August 2026, up 6.6% from the same period in 2025, but their value fell 2.1% to BHD 3.4 billion. Contactless payments accounted for 77.2% of transaction volume and 53.4% of value.
Central Bank of Bahrain reviews 7.8% lending growth and rise in bank capital adequacy to 21.3%
The Central Bank of Bahrain’s third board meeting update showed annual growth of 7.8% in lending to resident economic sectors and 8.0% in retail banks’ private deposits at the end of August 2026. The banking sector’s capital adequacy ratio reached 21.3% in the second quarter, compared with 20.2% a year earlier. Point of sale transaction volumes increased 6.6% during January-August 2026, while their total value declined 2.1%.