Printer Friendly

Turmoil hits lending.

MANAMA: Bahraini retail bank lending to businesses eased slightly in the first quarter, posting its worst performance in more than five years as caution prevails in a Gulf banking system hit by the global financial crisis.

Outstanding consumer loans by banks in the smallest Gulf economy also declined in the first quarter while annual money supply growth fell to 14.2 per cent in March, its slowest rate of growth in two years, the Central Bank of Bahrain said in a monthly report.

Loans and advances to businesses stood at BD3.87 billion ($10.27bn) on March 31, down 0.03pc from the end of December, the data showed. The last time there was a quarter-on-quarter drop was in the third quarter of 2003.

Year-on-year growth in business loans also dropped to 38pc in March from 58pc in December, the data showed.

Total Bahrain retail bank loans to consumers fell 4.7pc in March from the end of 2008, including an almost 13pc decline in loans secured by property mortgages, the central bank said.

Claims on the private sector stood at BD6.12bn on March 31, up 1.4pc from the month earlier but down 1.4pc from December. Claims on the private sector peaked at BD6.27bn in November.

Growth in Bahraini money supply, one indicator of future inflation, fell to 14.2pc in March from 17pc in February, with the level of money supply also easing from the month earlier to BD8.06bn.

Copyright 2009 Gulf Daily News

Provided by an company
COPYRIGHT 2009 Al Bawaba (Middle East) Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Gulf Daily News (Manama, Bahrain)
Date:May 13, 2009
Previous Article:SICO 'to benefit from market opportunities'.
Next Article:Standard and Poor's revises TIBC credit rating.

Related Articles
Bank will stay prudent says boss.
Bank hit by credit crisis; INDUSTRY: Still cheer for RBS despite sub-prime troubles.
RBS posts 9% rise in profits.
US bank is hit by crisis in funding; in association with RBS.
RBS head's pay rises to pounds 4.2m; IN ASSOCIATION WITH Rensburg Sheppards.
A&L earnings blow; In association with Chadwick Lawrence.
A&L profits almost wiped out by crunch; in association with RBS.
pounds 4.3bn in deposits at Abbey in nine months.
RBS shareholders to vote on bank's pounds 20bn bail-out.

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