Muscat, The banking sector in Oman continued to grow reasonably and met credit needs of all segments with special emphasis on the SME sector, supporting the economic activities including diversification initiatives.

The Central Bank of Oman (CBO) issued several regulatory amendments recently to boost liquidity and credit to create a stimulating business environment to spur growth in the economy.

The combined balance sheet of conventional and Islamic banks and windows (other depository corporations) taken together, provides a complete overview or the financial intermediation taking place in the banking system in Oman.

The total outstanding credit extended by other depository corporations grew by 7.7 percent to RO 24.1 billion as at the end of April 2018 from the level witnessed a year ago.

Credit to the private sector increased by 6.0 percent to 00 21.5 billion as at the end of April 2018. Of the tool credit to the private sector, the household sector stood at 45.5 percent, the non-financial corporate sector at 46.1 percent while financial corporations and other sectors obtained 4.9 percent and 3.5 percent, respectively.

Total deposits registered a growth or 2.3 percent to RO 22.0 billion, with private sector deposits growing by 1.8 percent to RO 14.1 billion as at the end of April 2018.

Sector-wise, the contribution of households in total private sector deposits was 49.6 percent, followed by non-financial corporations at 29.3 percent, financial corporations at 18.4 percent, and the other sectors at 2.7 percent.

Review of the activities of conventional banks indicates that total outstanding credit increased by 6 percent to RO 20.9 billion as at the end of April 2018. Credit to the private sector increased by 3.9 percent to RO 18.5 billion.

Conventional banks’ overall investments in securities grew by 6.6 percent to RO 3.1 billion. Investment in Government Treasury Bills stood at RO 342.2 million at the end of April 2018 while investment in Government securities inclusive of GDBs, Government Sukuk, and others stood at RO 1.4 billion.

Source: Oman News Agency