TDT | Manama The Daily Tribune – www.newsofbahrain.com Commercial banks here experienced a notable 5.3% yearon-year growth in total loans and facilities as of April 2024. Their collective loan portfolio stands at an impressive 12,149.2 million dinars. This growth unfolds ag
TDT | Manama
The Daily Tribune – www.newsofbahrain.com
Commercial banks here experienced a notable 5.3% yearon-year growth in total loans and facilities as of April 2024.
Their collective loan portfolio stands at an impressive 12,149.2 million dinars. This growth unfolds against a backdrop of high-interest rates, with prospects of potential reductions looming on the horizon.
Individual loans drop, Business loans rise While individual loans experienced a 2.9% decline to 5,854.2 million dinars compared to April 2023, business loans exhibited a robust 6.3% growth, reaching 5,292.4 million dinars.
This highlights the increasing focus on supporting the private sector and its role in Bahrain's economic growth.
Real Estate and Vehicle Loans grow Loans secured by real estate saw a 3.4% increase to 2,939 million dinars, while loans secured by vehicles grew by 5.2% to 99.2 million dinars.
These figures indicate continued demand in these sectors. Other Categories Loans secured by deposits witnessed a significant 22.5% drop to 240.1 million dinars.
Similarly, salary-secured loans declined by 3.7% to 1,780.4 million dinars. Meanwhile, credit card loans saw a slight 0.9% decrease to 112.8 million dinars.
SME Financing The Central Bank of Bahrain had earlier urged banks and licensed financial institutions to prioritise financing for small and medium enterprises (SMEs).
This includes expanding financing targets to allocate 20% of the local financing portfolio to this sector by the end of 2025.
The bank also encouraged the creation of dedicated units within credit departments to cater to the specific needs of SMEs.
