Bahrain banks under scrutiny amid global crisis

Bahrain's banks have been put under emergency watch in an effort to protect them from the global economic crisis, it emerged on Wednesday.

They have also been urged not to make any Bahraini staff redundant under cost-cutting, Gulf Daily News reported, citing finance minister Sheikh Ahmed bin Mohammed Al Khalifa.

The country's banking system is strong, but strict safeguards have been imposed to keep it that way, he told parliament on Tuesday.

These include spot checks by Central Bank of Bahrain inspectors on the books of local banks.

Total domestic banking liquidity was strong, he said, at $25.88 billion, enough to meet all the banks' financial obligations.

"The banking performance is good, if we take into consideration the effect the financial crisis is having on banks," said Sheikh Ahmed.

"The government has not intervened yet and will not intervene unless necessary. We are watching the situation closely to ensure that banks don't face any major setback.

"The Central Bank of Bahrain is daily monitoring banks' performance, in addition to weekly supervision to assess risk prevention measures.

"Sudden inspections are being paid to banks to inspect their files, but so far our banking funds are strong, and things are going in a smooth manner."

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM