Bahraini banks start to feel downturn

* username: rupertbu

Bahrain’s financial services sector has remained in good health despite the global downturn, but government officials are monitoring local companies closely after big losses at several banks and investment houses, a government official says.

The financial services sector, which accounts for about 27 per cent of economic activity in the nation, recently began to show signs of stress after two large investment companies announced significant losses in the final quarter of last year.

Gulf Finance House (GFH), which is heavily exposed to property projects across the region, lost US$607 million (Dh2.22 billion) for the quarter, while another investment company, Arcapita, revealed losses of $159m for the period.