Banking
From The Report: Bahrain 2016
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Thanks to a prudent yet flexible regulatory system, Bahrain’s lenders have been able to extend from a relatively small domestic base to become significant regional and global players. The wide range of external markets served by Bahrain’s banking sector makes for natural risk diversification, which has helped the industry maintain strong performance against global economic challenges. The country’s banking industry is divided by the licensing regime into both conventional and Islamic, and retail and wholesale operations, with numerous institutions holding multiple licence types. Moving forward, intense competition for business in the credit card segment has seen entry-level requirements for credit fall considerably in recent years, while an internet penetration rate of around 96% means Bahrain is set to continue playing a major role in the regional boom in e-commerce.

This chapter contains a viewpoint from Rasheed Al Maraj, Governor, Central Bank of Bahrain; and an interview with Ahmed Dayyat, Country Head, Mashreq Bank Bahrain.

Articles from this Chapter

Overview

Leading by example: Strong financial fundamentals continue to keep the sector globally competitive
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Thanks to a famously prudent yet flexible regulatory system, Bahrain’s lenders have been able to extend from a relatively small domestic base to become significant regional and global players. The extent of their reach helps them remain resilient amidst the challenges caused by regional unrest and falling oil prices over the past year. While these potential obstacles to growth remain, the sector’s strong aggregate balance sheet means that it is well positioned to take advantage of both domestic…

Viewpoint

Charting the path: Rasheed Al Maraj, Governor, Central Bank of Bahrain (CBB), on regulatory progress and human resource development
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This year marks the 22nd World Islamic Banking Conference in Bahrain, a milestone which is perhaps unmatched in the 40-year young Islamic finance industry. This year’s conference brings together many interesting themes and some of the most prominent speakers from around the world. Since the global financial crisis of 2008, the financial sector has entered a different phase, and Islamic finance is no exception to this situation. More regulations, stronger compliance requirements, larger capital…

Analysis

Pushing plastic: New offers are increasing the popularity of credit cards
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Credit cards have long been a key tool for financial institutions vying for market share in Bahrain’s competitive banking sector, and from a consumer’s perspective there has never been so much choice in the local market, with conventional and Islamic banks alike offering credit options. The major local and foreign institutions operating in the country, such as American Express and Credimax, offer credit cards to Bahrain residents. Most issuers offer more than one credit card option, with Arab…

Interview

Forthcoming strategies: OBG talks to Ahmed Dayyat, Country Head, Mashreq Bank Bahrain
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Interview:Ahmed Dayyat In the face of growing regional banking competition, how should Bahrain’s sector develop strategies to maintain market share? AHMED DAYYAT: Solid and proactive coordination is required between the Central Bank of Bahrain (CBB), the Bahrain Association of Banks (BAB), the Economic Development Board (EDB) and the Bahrain Institute of Banking and Finance (BIBF) to ensure the banking sector’s status as an anchor and major regional player is maintained. Bahrain’s competitive…