Bahrain private-sector credit hits 13.6 billion dinars, up 7.8%

Key Points

1. Outstanding loans to resident economic sectors reached 13.6 billion dinars by end-August, up 7.8% year-on-year.
2. Private-sector deposits rose 8.0% to about 14.6 billion dinars over the same period.
3. Capital adequacy climbed to 21.3%, signalling banks retain room to keep funding the economy.

The latest:

Credit extended to resident economic sectors in Bahrain stood at 13.6 billion dinars at the end of August 2026, a 7.8% increase on the same point in 2025, according to the Central Bank of Bahrain. The figures were reviewed by the bank’s board at its third meeting of the year, chaired by Hassan Khalifa Al Jalahma, alongside deposit, money-supply and capital-strength indicators.

Details:

• The credit figure: The Central Bank of Bahrain put the outstanding balance of loans and credit facilities to resident economic sectors at 13.6 billion dinars at end-August 2026. That is 7.8% above the same period of 2025, making credit growth the headline indicator in the board’s monetary and banking review.
• Who is borrowing: Of that total, 39.4% went to the business sector and 47.6% to individuals, according to the central bank. Retail borrowing therefore accounts for the larger share of outstanding credit, with the remainder spread across sectors the bank did not break out separately.
• Deposits: Private-sector deposits rose to roughly 14.6 billion dinars, a gain of 8.0% year-on-year, the central bank said. Deposits are expanding slightly faster than credit, leaving the deposit base above the outstanding loan book by about one billion dinars.
• Money supply: Broad money supply, M3, reached about 17.8 billion dinars, an increase of 1.4 billion dinars on the previous year, according to the central bank’s data. The statement did not break the aggregate down into its narrower components.
• Capital adequacy: The banking sector’s capital adequacy ratio rose to 21.3% at the end of the second quarter of 2026, against 20.2% in the corresponding period of 2025, the central bank said. The ratio measures capital held against risk-weighted assets.
• By bank type: Conventional retail banks posted a capital adequacy ratio of 27.2% and Islamic retail banks 25.5%, both well above the sector-wide 21.3% average reported by the central bank. The wholesale banking segment was not given a separate figure.
• The board meeting: The indicators were presented at the third board meeting of 2026 of the Central Bank of Bahrain, chaired by Hassan Khalifa Al Jalahma. The statement, carried by the Bahrain News Agency on 29 October 2026, set out the data through the end of August.
• The reference period: Credit, deposit and money-supply data run to the end of August 2026, while the capital adequacy reading is dated to the close of the second quarter, meaning the two sets of indicators cover different cut-off points.

Between the lines:

Deposit growth of 8.0% running marginally ahead of 7.8% credit growth, combined with a capital adequacy ratio that rose more than a percentage point year-on-year, points to a banking sector expanding lending without drawing down its buffers. Retail banks, both conventional and Islamic, are carrying capital ratios several points above the sector average.

What’s next

The central bank’s next board meeting and its subsequent monetary and banking update are the next points at which third-quarter capital adequacy and September credit and deposit data would be published.