The Central Bank of Bahrain’s Board of Directors held its first meeting of 2026, approving the Central Bank’s audited financial statements for 2025 and reviewing its key activities, year-to-date 2026 performance and financial-sector developments through February 2026. Against the backdrop of regional developments, the Central Bank has strengthened supervisory and oversight measures in coordination with banks, insurance companies and other financial institutions to support the continuity of financial services, including payment systems. Monetary and banking indicators through end-January 2026 showed money supply up BD 0.7 billion year on year to BD 16.7 billion, private deposits up 6.2% to BD 14.1 billion, and loans and credit facilities to resident economic sectors up 5.4% to BD 12.9 billion, with the Business Sector accounting for 39.7% and the Personal Sector 48.4% of total lending. The banking system balance sheet (retail banks and wholesale sector banks) rose 1.6% year on year to USD 250.3 billion, while January 2026 point-of-sale activity fell to 19.8 million transactions (down 6.5%, with 73.6% contactless) and BD 408.7 million in value (down 5.6%, with 50.2% contactless). Capital adequacy reached 21.8% in Q4 2025 (21.2% in Q4 2024), with ratios of 27.5% for conventional retail banks, 17.2% for conventional wholesale banks, 27.7% for Islamic retail banks and 19.7% for Islamic wholesale banks, and registered Collective Investment Undertakings totalled 1,745 as of December 2025 with overall net asset value down to USD 11.060 billion in Q4 2025 from USD 11.170 billion in Q4 2024.

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