News · BFSI
Bahrain's Central Bank has affirmed its commitment to business lending schemes while Parliament presses for a BD200 million injection into the economy through local banks.
✦ AI SUMMARY 30-second read
- Parliament's Financial and Economic Affairs Committee has proposed a BD200 million cash boost channelled through local banks to support businesses.
- Central Bank Governor Khalid Humaidan highlighted existing lending funds, including an SME Fund run by Bahrain Development Bank, as effective tools for growth.
- The Central Bank stopped short of committing to the proposed BD200 million injection, drawing a clear line between standing schemes and pandemic-era emergency measures.
Why it matters: Access to business finance is a key driver of economic activity, and the Central Bank's stance will shape how Bahrain's firms secure funding for growth.
This summary was generated by AI. Editors may review and update it.
Bahrain's Central Bank has signalled strong support for business lending as a tool for economic development, even as Parliament pushes for a BD200 million cash injection to be delivered through local banks.
The proposal, backed by Parliament's Financial and Economic Affairs Committee, calls on the Ministry of Finance and National Economy to channel the funds into the market, giving firms wider access to financing.
Central Bank Governor Khalid Humaidan responded in writing, affirming the importance of lending funds in helping businesses grow, fund new projects and sustain economic momentum.
What was announced
Humaidan described financing funds as an important tool with a positive impact on economic development, citing their role in supporting productive activity and business expansion.
Among the existing schemes he highlighted was the SME Fund, operated by Bahrain Development Bank alongside private banks and with support from Tamkeen. The fund provides loans tailored to the needs of small and medium-sized enterprises.
Pandemic measures set apart
The Governor drew a clear distinction between standing lending programmes and the emergency financial support extended during the Covid-19 pandemic.
He described the pandemic measures as an exceptional response to emergency circumstances, introduced specifically to protect banks and businesses from severe economic disruption and help firms remain solvent.
What happens next
The Central Bank said it would continue engaging with Parliament and other bodies to advance business lending, economic growth and sound banking oversight.
It also emphasised the importance of keeping lending practices and financial supervision in line with recognised banking standards.
No commitment was made regarding the BD200 million injection proposed by Parliament. Elets will update this story as developments emerge.
