Bahrain’s M3 Money supply rose 10pc, says top Bank

Bahrain’s M3 Money supply climbed 10 per cent on an annual basis in August, said the Central Bank of Bahrain (CBB). CBB’s monthly statistical bulletin for August 2019 indicated an increase to BD 13,531.5 million as at the end of August 2019, compared to BD 12,304.4m as at the same period-end last year.

The money supply is the total value of money available in an economy at a point of time. Besides, the total outstanding balance of public debt instruments which includes Development Bonds, Treasury Bills, Islamic Leasing securities and Al Salam Islamic securities remained at BD 11,293.4m at the end of August 2019, a drop of 2.2pc compared to its level of BD 11,551.0m in August 2018.

The data also indicated an increase in the total balance sheet of the banking system from USD 192.3 billion at the end of August 2018 to USD 200.6bn at the end of August 2019, an increase of USD 8.3bn, or 4.3pc, in the 12 months.

Outstanding loans rise 6.9pc

The total value of outstanding loans and credit facilities provided by retail banks amounted to BD 9,829.8m at end of August 2019 compared to BD 9,196.0m at the end of August 2018, an increase of 6.9pc. This amount includes loans and facilities provided to the business sector amounting to BD 5,205.0m at the end of August 2019 compared to BD 4,940.1m at the end of the same period last year, an increase of 5.4pc.

Credit, debit transactions rise Credit card and debit card transactions across Point of Sales (POS) terminals amounted to BD 198.3 million in August 2019 compared to BD 182.6 million in August 2018; marking an increase of BD15.7 million or 8.6pc. The balance sheet of retail banks increased by BD2.9bn, or 9.1pc, reaching a total of BD 34.8bn at the end of August 2019 compared to BD 31.9bn as at end of August 2018.

Non-bank deposits up

The data also shows an increase in local non-bank deposits which amounted to BD 13.0bn at the end of August 2019 compared to BD11.8bn at the end of August 2018, an increase of 10.2pc.