Bahrain C.bank announces new tool for local banks

Mubasher: The Central Bank of Bahrain (CBB) has introduced on Sunday a new instrument to help local lenders in Bahrain manage their liquidity.

Bahrain’s central bank has announced an interbank repurchase instrument that covers the government's securities denominated in Bahraini dinars, the regulator said in a statement, according to Reuters.

A part of efforts to develop the banking sector in Bahrain, this tool will help conventional retail banks borrow from the local market at lower interest rates and with the guarantee of the securities as a collateral,” the central bank said, according to Reuters.

Furthermore, the new repurchase instrument is expected to allow for investing excess liquidity at a lower risk, the central bank added, according to Reuters. 

Mubasher Contribution Time: 09-Dec-2018 12:31 (GMT)
Mubasher Last Update Time: 09-Dec-2018 13:24 (GMT)