Bahrain Banks And Swift Codes: A Standardized System

SWIFT codes are used to identify specific banks and their branches during international money transfers. They are also used by banks to exchange messages with each other. These codes are made up of 8 or 11 characters, with 11-digit codes referring to specific branches and 8-digit codes (or those ending in 'XXX') referring to the bank's head office. Bahrain banks do use SWIFT codes, and here is a list of some of them:

- NBOBBHBM - NATIONAL BANK OF BAHRAIN

- BIBBBHBM - BAHRAIN ISLAMIC BANK B.S.C.

- BIBBBHBMINV - BAHRAIN ISLAMIC BANK B.S.C.

- NBOKBHBMFCB - NATIONAL BANK OF KUWAIT S.A.K.P- BAHRAIN BRANCH

What is a SWIFT code?

A SWIFT code, also known as a SWIFT-BIC, BIC code, SWIFT ID, or ISO 9362 code, is a standard format of Bank Identifier Codes (BIC) used to identify banks and financial institutions globally. The SWIFT network, which is a messaging system, is used by financial institutions to send transfer requests to one another.

SWIFT codes are unique eight- or eleven-digit codes that identify a bank branch. They are made up of letters and numbers and follow a specific format:

• First 4 characters: Bank code (only letters)
• Next 2 characters: Country code (only letters)
• Next 2 characters: Location code (letters and digits)
• Last 3 characters: Branch code (optional; letters or numbers). If 'XXX' is used, it refers to the bank's head office.

For example, in the SWIFT code 'BARCGB22XXX':

• BARC is the bank code (Barclays)
• GB is the country code (United Kingdom)
• 22 is the location code
• XXX represents the head office

SWIFT codes are used when transferring money between banks, particularly for international wire transfers or SEPA payments. They help ensure that funds reach the correct destination. Banks also use these codes to exchange messages with each other.

What is a SWIFT payment?

A SWIFT payment is an international wire transfer sent via the SWIFT international payment network. SWIFT, which stands for Society for Worldwide Interbank Financial Telecommunication, is a messaging network used by financial institutions worldwide to securely send and receive information, such as money transfer instructions.

SWIFT is a vast global network used by financial institutions to quickly, accurately, and securely send and receive information. It is a member-owned cooperative that provides safe and secure financial transactions for its members. The network allows individuals and businesses to take electronic or card payments, even if the customer or vendor uses a different bank than the payee.

SWIFT is not a financial institution and does not hold or transfer funds. Instead, it facilitates the secure communication of payment instructions between banks. In a SWIFT payment, banks use standardised SWIFT codes to send and receive unique money transfer instructions, enabling them to make secure, cross-border transactions. These codes ensure that each bank involved in the transfer process is identified and that the money reaches the correct destination.

SWIFT connects more than 11,000 financial institutions in over 200 countries and territories. It is widely used for international money transfers, including business transactions, personal remittances, and foreign exchange. The network is particularly useful for sending and receiving payments internationally, as it provides a standardised and secure way to exchange information and make payments across borders.

To make a SWIFT payment, individuals typically need to provide their bank with the recipient's full name, bank name, account number, and other relevant details. They also need to identify the SWIFT/BIC codes for both their bank and the recipient's bank. After entering the payment details and reviewing the payment and fees, individuals can confirm and send the payment.

How to make a SWIFT payment

Yes, banks in Bahrain use SWIFT codes. SWIFT, or the Society for Worldwide Interbank Financial Telecommunication, is a global financial messaging network that enables financial institutions to exchange information and electronic messages about financial transactions.

• Identify your bank's SWIFT/BIC code: This is an international code that uniquely identifies your bank. You can usually find this on your bank's website or by contacting customer service.
• Identify the recipient's bank SWIFT/BIC code: You will need this code as well, and the recipient should be able to provide it. Double-check to avoid any errors.
• Collect the recipient's account details: This includes their full name, bank account number, and bank name. In some cases, you may also need the bank's address.
• Log in to your online banking system: Most banks allow international payments to be made online. If you are unsure, contact your bank's customer service for assistance.
• Navigate to the international payments section: This section varies between banks but is typically found in the payments or transfers area.
• Enter the payment details: Input the recipient's bank details, including their SWIFT/BIC code and account number. Also, enter the amount and select the currency. Double-check all the information before proceeding.
• Review the payment and fees: Before submitting the payment, review the details, transfer fees, and exchange rate. Ensure you are comfortable with these before confirming.
• Confirm and send the payment: If everything looks correct, confirm the payment. Your bank will then send the money via the SWIFT network to the recipient's bank.
• Record the payment reference: Your bank may provide a confirmation number or payment reference, which you should keep in a safe place for tracking or addressing any issues.

Please note that SWIFT transactions can be costly, especially for smaller transactions, as they often involve fees and charges from multiple banks. Therefore, it is essential to check with your bank about any associated costs. Additionally, ensure you provide accurate and complete information to avoid delays or errors in processing.

Why use SWIFT codes?

SWIFT codes are used to identify specific banks and their branches, ensuring that money is transferred to the right place. They are also used for exchanging messages between banks. These codes are particularly important for international wire transfers, as they help increase security and decrease fraud. The codes are comprised of 8 or 11 characters, with the first four characters representing the bank's code, the next two characters representing the country code, the following two characters representing the location code, and the last three characters representing the branch code.

For example, in the SWIFT code 'BARCGB22XXX':

• BARC is the bank code (Barclays)
• GB is the country code (United Kingdom)
• 22 is the location code
• XXX represents the head office

SWIFT, which stands for the Society for Worldwide Interbank Financial Telecommunication, is a messaging network used by financial institutions to securely send and receive information, such as money transfer instructions. It is a global standard for secure financial messaging, connecting more than 11,000 financial institutions in over 200 countries and territories.

When making a SWIFT payment, individuals need to identify their bank's SWIFT/BIC code, as well as the recipient's bank SWIFT/BIC code, account details, and other relevant information. Most banks allow international payments to be made online through their online banking system.

SWIFT codes are important because they enable banks to ensure that international transactions are secure, accurate, and efficient. They are widely used for international money transfers, including business transactions, personal remittances, and foreign exchange.

How are SWIFT codes formatted?

SWIFT codes are formatted as follows:

• First 4 characters - These are letters only and represent the bank code.
• Next 2 characters - These are also letters only and represent the ISO 3166-1 alpha-2 country code.
• Next 2 characters - These can be letters or digits and represent the location code. A passive participant will have a "1" in the second character.
• Last 3 characters - These can be letters or digits and represent the branch code. If "XXX" is used, it refers to the bank's head office.

SWIFT codes comprise 8 or 11 characters. All 11-digit codes refer to specific branches, while 8-digit codes (or those ending in 'XXX') refer to the head or primary office.

Frequently asked questions