Bahrain Post to stamp its mark on banking

TDT | Manama

Email : editor@newsofbahrain.com

Not just postal service, soon Bahrain Post will also start offering Banking service.

The idea is n’t to turn the postal service into a full-fledged bank, but to provide simple, accessible financial services without the usual hurdles like minimum balance requirements. The goal: reach low-income citizens and pensioners who often find traditional banking rules too restrictive.

A draft law enabling this shift has cleared its first hurdle, winning support “in principle” from Parliament’s Financial and Economic Affairs Committee. Lawmakers see the move as a practical way to bring financial access to people who routinely struggle with conditions such as minimum deposits or salary thresholds.

The proposal was introduced by MP Basema Mubarak. Her original version granted Bahrain Post wide powers — accepting deposits, granting loans, and managing funds. After committee discussions, the draft was streamlined to a single, clearer clause allowing Bahrain Post to offer financial services under Central Bank of Bahrain regulations.

Supporters say the change could create a new revenue stream for Bahrain Post, ultimately feeding into the state budget. But the Ministry of Transportation and Telecommunications, which oversees the postal sector, says more coordination with other government agencies is needed before it can issue a final position.

The Central Bank of Bahrain has also urged caution, noting that banking services come with significant regulatory, operational and technological responsibilities. International models, it pointed out, show that post offices often act as intermediaries for banks rather than becoming full financial institutions themselves — a structure that lowers risk and simplifies oversight.

The government’s formal stance will be confirmed once the Cabinet issues its detailed response. Parliament’s Committee on Public Utilities and the Environment has also recommended approving the proposal.

MP Basema Mubarak, in her supporting statement, noted that postal services around the world have expanded far beyond mail delivery. “As economies have evolved, post offices in many countries now offer accounts, loans, deposits, withdrawals and postal cheques — helping low-income individuals access essential financial services,” she said.