Total credit grows by 9.6 per cent to OMR22b

Business Saturday 21/January/2017 16:52 PM
By: Times News Service
Total credit grows by 9.6 per cent to OMR22b

Muscat: Oman’s financial institutions, including Islamic banks, posted a robust 9.6 per cent growth in total credit, reaching OMR21.9 billion as of the end of November, 2016.
Credit to the private sector had increased by 11 per cent to OMR19.7 billion by the end of November 2016. Of the total credit to the private sector, the household sector (mainly personal loans) stood at 46.4 per cent, closely followed by the non-financial corporate sector at 45.4 per cent and financial corporations at 5.1 per cent while other sectors accounted for the remaining 3.1 per cent.
Total deposits registered a growth of 4.5 per cent, reaching OMR20.3 billion as of the end of November 2016.
Private sector deposits in the banking system reached OMR13.1 billion, reflecting a 5.6 per cent growth, as of the end of November 2016.
Sector-wise, the share of households was 48.7 per cent of the total private sector deposit base, followed by non-financial corporations at 28.3 per cent, financial corporations at 19.8 per cent and the other sectors at 3.2 per cent.
Banking sector regulations and reforms by the Central Bank of Oman (CBO) resulted in a strong and resilient banking system over the year. Conduct of monetary policy, risk-based supervision of banks, implementation of Basel accords, development of modern payment and settlement systems and backing the policy of growth with policies on limiting inflation led to financial stability. The CBO continues to encourage growth in credit extended to various sectors, including SMEs.
Given the present trend of low oil prices, both the fiscal situation and the balance of payments in the current account faced challenges, with the authorities taking several steps to address the issue.
With the hydrocarbon sector still fundamental to the economy, oil prices impacted the overall economic activity.
However, inflation stood at 1.85 percent in November 2016, compared to the level in November 2015.
The banking sector remained resilient and continued to supportthe economic diversification initiatives and credit needs.