Banking

Famously one of the most diverse in the region, the Bahraini banking sector is composed of local, regional and international firms that have flourished in a liberal but well-regarded regulatory environment. The past year has been a challenging one for the industry, particularly given the unrest in the early months, yet most licensed lenders in Bahrain entered 2012 on the back of robust financial results. Key sector indicators remained positive in 2011: assets grew 2.6%, lending increased 14.9% and deposit growth registered a 10.1% rise year-on-year. There are certainly challenges ahead, most notably for Bahrain’s wholesale banks whose traditional reliance on funding from European banks has resulted in a potential vulnerability. However, thanks to a government policy of fiscal expansion, the short term presents the prospect of a wealth of new business opportunities. This chapter includes an interview with Abdulkarim Ahmed Bucheery, Chairman, Bahrain Association of Banks, as well as a dialogue feature with Mazin Manna, CEO, Citibank and Patrick Gallagher, CEO, HSBC.