Conventional and Islamic banks assets in Oman grow

Business Saturday 03/December/2016 16:55 PM
By: Times News Service
Conventional and Islamic banks assets in Oman grow

Muscat: Combined balance sheet of conventional and Islamic banks (other depository corporations) taken together, provides a complete overview of the financial intermediation taking place in the banking system in Oman.
The total outstanding credit extended by the other depository corporations stood at OMR21.8 billion at the end of September 2016, a rise of 11 percent over the level witnessed a year ago. Credit to the private sector increased by 13.2 percent to OMR19.7 billion as at the end of September 2016 according to the bulletin published by the Central Bank of Oman (CBO).
Of the total credit to the private sector, the household sector (mainly under personal loans) and the non-financial corporate sector got an equal share of 45.8 percent each, financial corporations at 5.1 percent and other sectors the remaining 3.2 percent.
Total deposits showing a growth of 4.9 percent to OMR20.4 billion at the end of September 2016. Private sector deposits at the banking system registered a growth of 6.5 percent to OMR13 billion as at the end of September 2016.
Sector-wise, the share of households was 48.9 percent of the total private sector deposit base, followed by non-financial corporations at 28.1 percent, financial corporations at 19.6 percent and the other sectors at 3.2 percent.
At the end of September 2016, narrow money stock (M1) when measured on year-on-year basis, registered a marginal drop of 1.7 percent to OMR5.2 billion. Broad money supply M2 (i.e. M1 plus quasi-money) stood at OMR15.5 billion at the end of September 2016, up from OMR14.7 billion a year ago, registering an increase of 5.6 percent during the period.
In respect of domestic interest rate structure of conventional banks, the weighted average interest rate on RO deposits increased from 0.894 percent in September 2015 to 1.349 percent in September 2016 while the weighted average RO lending rate increased from 4.790 percent to 5.030 percent during the same period.
The overnight Rial Omani domestic inter-bank lending rate increased to 0.403 percent in September 2016 from 0.217 percent a year ago, according to the CBO bulletin.