Banking sector remains strong on stable funding sources, says CBO

Muscat - 

The financial position of the Omani banks remained strong in 2018 on the back of stable financing sources, according to the Central Bank of Oman (CBO).

CBO in its latest monthly statistical bulletin said the improved economic prospects and favourable financial market conditions continue to support the financial stability in Oman.

‘The CBO continued to pursue banking and regulatory polices in line with internationally agreed standards and practices so that banking sector remains resilient and supportive of growth without posing any challenge to financial stability’, the central bank said.

The CBO report showed that the banking sector’s gross non-performing loans as a proportion of total loans and advances stood at 3.3 per cent at the end of September 2018, while the Basel capital adequacy ratio was 16.7 per cent at the end of September 2018 as compared to that mandated at 12.875 per cent.

Total outstanding credit extended by Oman’s banking sector stood at RO24.9bn as of the end of October 2018, a rise of seven per cent over the level witnessed a year ago.

Aggregate deposits grew by 4.7 per cent to RO22.5bn with private sector deposits increasing by 2.5 per cent to RO14.2bn as of the end of October 2018.

Islamic banking entities provided financing to the extent of RO3.5bn as of the end of October 2018 compared to RO2.9bn a year ago.

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