Bahrain's money supply witnessed a significant surge, reaching BD16.3 billion by the end of December 2024, an increase of BD0.3bn compared to the previous year, as revealed during the Central Bank of Bahrain’s (CBB) first board meeting of 2025. 

Chaired by Hassan Al Jalahma yesterday, the meeting highlighted the Kingdom’s robust financial sector performance.

The CBB board, in its review of key monetary and banking indicators, approved the CBB’s annual report and audited financial statements for 2024, alongside discussions on the CBB’s investment policy for 2025 and ongoing activities.

The data presented a picture of steady growth across various financial segments. Retail banks saw total private deposits rise to approximately BD14.2bn, a 0.4pc increase from December 2023.

Loan and credit facilities extended to resident economic sectors reached BD12.3bn, marking a 4.6pc increase, with the business and personal sectors accounting for 42.3pc and 48.3pc respectively.

The banking system’s balance sheet, encompassing both retail and wholesale banks, expanded to $247.8bn, a 3.9pc increase.

Digital transactions continued their upward trajectory, with point of sales (POS) data for January 2025 showing 21.2 million transactions, a 25.4pc increase year-on-year.

Contactless payments dominated, accounting for 77.4pc of all transactions. The total value of POS transactions reached BD433m, a 14.6pc increase, with contactless payments comprising 51.9pc.

The banking sector’s resilience was underscored by its strong capital adequacy and liquidity. The capital adequacy ratio reached 21.2pc in Q4 2024, up from 19.7pc in Q4 2023. Conventional retail banks led with a 32pc ratio, followed by Islamic retail banks at 24.6pc, conventional wholesale banks at 16.9pc, and Islamic wholesale banks at 19.6pc.

The Collective Investment Undertakings (CIUs) sector also showed positive growth. The number of registered CIUs increased to 1741 by January 2025, from 1678 in January 2024. 

The net asset value (NAV) of CIUs rose to $11.170bn in Q4 2024, a 0.3pc increase. Sharia-compliant CIUs experienced a notable 6pc increase in NAV, reaching $1.715bn.

While Bahrain-domiciled CIUs saw a slight decrease in NAV, overseas-domiciled CIUs posted a 1.1pc increase, contributing to the overall positive performance of the sector.

The CBB’s report paints a picture of a dynamic and expanding financial landscape in Bahrain, supported by robust growth in money supply, digital transactions, and overall banking sector stability.

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