Leading bankers and regulators during the Meet the Press hosted by the Bankers Association of Bahrain (BAB) told the media that though things were not too scary for businesses but nobody can condone even the isolated incidents of protests that sometimes, for example, target the business interests of the banks as well.
BAB Chairman and Chief Executive CEO of BBK A. Karim Bucheery said the situation not that bad and businesses were doing well if ideally not in a ‘perfect’ climate. “Everybody wants to see the calm situation by coming back to normal,” he said.
Bucheery referring to the BBK’s four ATMs and one Financial Mall which have been targeted by thugs said that the bank was reviewing the possibility of restoring the ATMs in Jidhafs, Budaiya, Salmabad and at Round 22 in Hamad Town.
He deplored such acts and said vandalism might deter bank to offer services at the door steps of the customers across the country. However, he said that the attack on Budaiya Financial Mall which targeted mainly the infrastructure was restored by the bank immediately.
He said that the issue of targeting the ATMs and Financial Malls by thugs have been taken by with the concerned authorities who assured an additional deployment of resources to protect these vital business interests in the country.
Talking about the overnight drop of two notches in the Sovereign Rating in the face of 2011 events, he said such moves definitely hit the local business confidence hard including the banking sector.
Similarly, some banks had to make provisions in the wake of loss in certain business lines in the past.
The bank like BBK, he continued, which has most of its assets in Bahrain finds really hard and it will take a long time for the country to get the lost confidence of the rating agencies back.
He contended the overall business climate is fine in 2012 as hospitality industry reports robust gains in the Q1, so the BBK and other banks
Referring to the lending activity especially in the real estate sector, he said the first public private partnership (PPP) for housing sector spearheaded by the Government of Bahrain he said the banks would finalise the commitment of BD50 million by May end for the project under the umbrella of Naseej.
Overall, he said, there has been a slump in the lending activity, however, he said that things were getting back to normal with mortgage loans have had no major problems in the recent past.