However, since Bahraini banks are major providers of credit throughout the MENA region, they have been affected by credit defaults elsewhere, and by problems in the real estate sector elsewhere in  BIS Review 3/2010  1  the region.
Nonetheless, the high levels of capital adequacy of our banks has allowed them to absorb these losses and the banking system remains on a very solid footing. A further source of strength for Bahrain’s financial sector has been our position as a hub for Islamic finance.