Local use of credit facilities rises by 5.1%
Detailed data showed that the outstanding balances of the cash portion of credit facilities extended to residents “on the domestic market” grew by 5.1 percent from the beginning of the year through the end of August, amounting to KD 2.65 billion. This brought the total outstanding cash portion to KD 55.15 billion, compared with KD 52.50 billion at the end of the corresponding month last year.
The Central Bank clarified in a detailed summary that the cash portion of credit facilities extended to the business sector accounted for 65 percent of the increase in the outstanding balances of the cash portion of credit facilities, while personal facilities contributed 35 percent.
In greater detail, business sector facilities reached KD 34.42 billion at the end of August, representing a new increase of KD 1.72 billion compared with KD 32.70 billion in the corresponding month last year. It is worth noting that the growth and increase recorded since the beginning of the current year were driven by rising activity across the majority of economic sectors, primarily real estate and construction, oil and gas, securities purchases by individuals and companies, industry, non-bank financial institutions, and public services.
Parallel to the growth in credit facilities, there was a corresponding increase in the balances of residents’ deposits in local banks. Total residents’ deposits rose by approximately KD 4.43 billion, or 8.4 percent, reaching KD 56.88 billion at the end of August 2026, compared with approximately KD 52.45 billion in the corresponding month last year. This increase was attributed to a rise in public institutions’ deposits of approximately KD 2.45 billion, or 32.8 percent, bringing their value to KD 9.92 billion, compared with KD 7.47 billion.
Similarly, government deposits increased by approximately KD 1.54 billion, or 35.7 percent, reaching approximately KD 5.85 billion at the end of August 2026, compared with KD 4.31 billion in the corresponding month last year.
Deposits from the resident private sector also increased by approximately KD 440 million, or 1.1 percent, bringing the total to KD 41.11 billion at the end of August 2026, compared with KD 40.67 billion at the end of the corresponding month.
Private sector deposits remain the primary source of funding for local banks, accounting for 39.2 percent of the total liabilities of local banks. Public institutions’ deposits accounted for 9.5 percent, and government deposits for approximately 5.6 percent each of the total liabilities of local banks at the end of August 2026.
The total assets of local banks increased by approximately KD 4.83 billion, or 4.8 percent, to reach KD 104.75 billion at the end of August 2026, compared with KD 99.92 billion in the corresponding period last year. This increase is attributed to the following:
2. Claims on the private sector increased by KD 2.71 billion, or 5.5 percent, to reach KD 52.28 billion.
3. Foreign assets increased by the equivalent of KD 1.81 billion, or 5.6 percent, to reach the equivalent of KD 34.24 billion.
5. Foreign assets ranked second, accounting for 32.7 percent of the total assets of local banks. The increase in these assets resulted from rises in the balances of both foreign banks’ loans and foreign facilities extended to non-residents, which increased by 18.1 percent and 12.8 percent, respectively.
