Money supply surges 5pc to BD15.7 billion

AN increase in money supply and transactions as shown in the latest data from the Central Bank of Bahrain (CBB) reflects increased economic growth during the first five months of the year.

Money supply in its broad sense, (M3), totalled BD15.7 billion at the end of April 2023, an increase of five per cent compared to the level as of end-April 2022, the regulator said in a statement after its second board of directors meeting for the year 2023.

As for retail banks, total private deposits increased to BD13.8bn at the end of April 2023, an increase of 7.9pc compared to end-April 2022.

Chaired by Hassan Al Jalahma, the board reviewed key monetary and banking developments for the period till end-April 2023, the CBB’s financial performance report, developments in the financial sector for the second quarter of 2023, and progress made regarding the Financial Services Sector Development Strategy, noting that the outstanding balance of total loans and credit facilities extended to resident economic sectors increased to BD11.5bn at the end of April 2023, an increase of 3pc compared to the end of April 2022, with the business sector accounting for 44.3pc and the personal sector taking 51.1pc of total loans and credit facilities.

The balance sheet of the banking system (retail banks and wholesale sector banks) increased to $225.6bn at the end of April 2023, an increase of 3.1pc compared to the end of April 2022.

Point of sale (POS) data indicated an increase in the number of transactions during the five months of 2023 (January–May 2023), totalling 73 million transactions (77pc of which were contactless), an increase of 14.8pc compared to the same period in 2022.

The total value of POS transactions in the kingdom during January-May 2023 totalled BD1.7bn, (50.2pc contactless), an increase of 8.6pc compared to the same period in 2022.

Review of the data shows the banking sector maintained a high level of capital adequacy and liquidity, as the capital adequacy ratio of the banking sector amounted to 19.1pc in Q1-2023.

The capital adequacy ratio was 21.3pc for conventional retail banks, 16.9pc for conventional wholesale banks, 21.3pc for Islamic retail banks, and 16.1pc for Islamic wholesale banks.

Registered collective investment undertakings (CIUs) rose in number to total 1,773 as of end-May 2023.

The net asset value (NAV) of the CIUs increased from $11bn in Q1 2022 to $11.7bn in Q1 2023, reflecting an increase of 6.9pc.

Moreover, the NAV of overseas domiciled CIUs increased from $5bn in Q1 2022 to $6.4bn in Q1 2023, an increase of 28.4pc.

In addition, CBB board emphasised the importance of following up with the initiatives stated in the strategy, and to coordinate with the relevant parties in the financial sector concerning the initiatives related to improving the financial services, digitisation, and provide proper training to the manpower in the sector.




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