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New bank rules to spur deposit contest in Bahrain
- Bahrain: Wednesday, October 28 - 2009 at 09:19
Bankers have said that the decision by the Central Bank of Bahrain, which requires all banks to have a loan to deposit ratio of 75%, will encourage lenders to compete more for deposits and prompt them to offer higher rates to attract customers, Reuters has reported. Previously the central bank had a voluntary code for banks to have the ratio of 60-65% for most banks and 70-75% for those without large investments outside loans and it would only ask banks to lower their ratio if they were above expected levels.
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