Printer Friendly

A streak of optimism.

Banker Middle East

H ow have Bahraini banks performed in 2017 and what are your projections for this year? Compared to 2016, the Bahraini banking sector has fared resiliently against three broad benchmarks last year--growth, profitability and capitalisation. This is commendable considering the regional slowdown and cutbacks on new large governmental projects. The projection for this year is for continued stability and conservative growth.

What were the milestones achieved by the financial sector in 2017? Despite a contractionary background, Bahraini banks have managed to grow their franchise network by increasing branches both domestically and abroad. Non-performing loans (NPL) as a percentage of loan portfolios have declined and appear to have stabilised. Preparation and implementation of IFRS- 9 for the banking sector was completed. Additionally, consultation papers for risk management enhancement initiatives have been issued and responses received. Large strides in the field of fintech was also achieved via introduction of new licensees, products and services, which have made the financial sector more efficient by improving quality, fees and speed of service.

How has the country's banking sector supported the Bahraini economy and how do you see this developing over the short term? The banking sector have supported the slowdown in the real-estate sector through the revival of several stalled projects under a government-sponsored scheme. Support to the SME sector and social housing has also been strong and is expected to continue.

What do you see as the main risks that may impact the stability of the financial sector this year? The main risk to the economy remains the volatility of oil prices, though present price levels are adequate to support sound recovery. Moreover, the introduction of VAT this year will have an impact on consumer purchasing power though it is expected to be implemented later this year around October or November of 2018.

In your opinion, what are the long-term challenges for financial institutions in Bahrain? The main long-term challenge will remain Bahrain's competitive ability vis-a-vis regional competitors. The recent discovery of substantial oil and gas offshore and on-shore reserves provides a positive aspect for the long term.

[c] 2018 CPI Financial. All rights reserved. Provided by SyndiGate Media Inc. ( ).

COPYRIGHT 2018 SyndiGate Media Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2018 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:CPI Financial
Date:Jul 30, 2018
Previous Article:Customer-centric technology.
Next Article:UAE and Invest India sign artificial intelligence MoU.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters |