The initial reports indicated that Bahraini banks have good internal control systems overall. We have also required all locally-incorporated banks to submit risk concentration policy documents.
We carried out a review of all banks’ policies and risk limits in the summer of 2008, and we are in the process of notifying all banks with observed deficiencies or gaps to address these matters by the end of the year. A particular issue for risk concentration concerns the extent to which banks are exposed to the real estate sector.