Bahrain bank deposits rise despite war effects
Reports from the Bahrain Central Bank have shown that the performance of Bahrain's banking sector during the first half of 2026 remained resilient despite the fallout from regional conflicts, particularly in the second quarter. Despite the tensions, liquidity, cash, and deposits experienced solid growth; money supply "M2" increased by 5.2% to reach 15.383 billion Bahraini dinars, while domestic deposits rose by 4.8% to 17.587 billion dinars. Credit growth continued at 2.3%, with the loan-to-deposit ratio decreasing to 77%, reflecting an improvement in liquidity margins. Conversely, the assets of wholesale banks and foreign liabilities declined by approximately 4.6% and 5%, respectively, while shareholders' equity grew by 3.2%. Overall, Bahrain’s banking economy demonstrated strong resilience, maintaining internal stability despite the crisis impacts primarily on external operations and the regional banking center.
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