The total assets of Bahrain's wholesale banks will grow at a rate of 15 to 20 per cent over the next three years, according to a Securities and Investment Company (Sico) report.

In an extensive report, Sico said its retail banking assets were expected to grow at a faster pace of 20 to 25 per cent over the same period driven by domestic liquidity, an increase in the expatriate population and a rise in average wages.

Bahrain's banking sector is set to continue its growth momentum driven by buoyant regional economies and the investor-friendly regulatory regime, it said.

The report identifies Islamic banking as a key driver of growth going forward as the surge in Sharia-compliant assets will exceed the overall growth rate of the sector.

The report discusses in detail various aspects of the Bahrain banking sector and overall economy such as the industry structure, regulatory framework, key industry drivers, operational matrices, possibility of currency revaluation, impact of sub-prime crisis on the industry.

It provides an overview of the Bahrain banking sector, which has been known as the banking and financial centre of the GCC and the Middle East region for the past three decades.

Justifying its role in the region, the island had 149 banking institutions, both locally and globally incorporated, with combined assets of $245.8 billion last year.

'Our latest research report offers our investors an overview of Bahrain's banking sector,' said chief executive officer Anthony Mallis. The report will serves as a handbook for potential as well as existing investors interested in Bahrain's banking sector.-TradeArabia News Service