Business | Economy
Bahrain's financial system still in good health, no bailouts planned
Bahrain's central bank governor reiterated on Tuesday that the country's financial system remained sound and its banks had sufficient capital, as the global crisis bites in the oil-exporting region.
- Reuters
- Published: 23:25 December 2, 2008
Manama: Bahrain's central bank governor reiterated on Tuesday that the country's financial system remained sound and its banks had sufficient capital, as the global crisis bites in the oil-exporting region.
"We have not seen the need to take exceptional measures to support our banks, which remain liquid and well capitalised," Rasheed Al Maraj said in a speech.
"Our domestic financial markets have continued to function normally despite the enormous stresses of recent months resulting from international events. It is true that domestic liquidity conditions have become tighter, but this has been mainly due to outflows of capital linked to earlier speculation on the revaluation of GCC currencies."
Some Bahraini banks posted third-quarter losses due to the global financial turmoil.
However, no financial institution has had to be bailed out so far since the crisis set in.
In nearby Kuwait, the government stepped in to prop up Gulf Bank after it made unsustainable currency derivatives losses, and the federal government of the United Arab Emirates also rescued two Islamic mortgage firms through a complex merger.
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