Local banks’ financial position robust: BAB

Bahrain’s banks are in a very strong financial position with prudent financial and monetary policies adopted by Central Bank of Bahrain (CBB) and best financial and banking practices followed by banks to ensure financial stability, sustainability and profit growth, Dr Waheed Al Qassim, chief executive of Bahrain Association of Banks (BAB), has said.

In an official statement, Dr Waheed Al Qassim said that the Kingdom is continuously implementing regulations to maintain financial stability, stressing that the financial and economic support by KSA, UAE and Kuwait is contributing effectively to achieve this objective, which will undoubtedly reflect positive credit ratings for Bahrain.

Pointing out Moody’s and Fitch ratings, Dr Al Qassim said that the tripartite Gulf support will boost Bahrain economy in terms of credit rating and ensure Bahrain’s stabilized financial condition with steady improvements.

Al Qassim also pointed out that the International Monetary Fund had praised Bahrain financial sector’s stability for its large capital reserves, capital adequacy and assets quality. In the same context, Al Qassim noted the CBB’s continued commitment to maintaining an exchange rate peg at 0.376 Bahraini dinars to the US dollar.

The exchange rate peg provides an anchor for monetary stability, which contributes to controlling inflation and protecting the external value of the currency.