Total outstanding credit extended estimated at OMR24.9 billion
December 29, 2018 | 2:19 PM
by ONA
Central Bank of Oman. - Times file picture

Muscat: The Central Bank of Oman (CBO) continued to pursue banking and regulatory policies in line with internationally agreed standards and practices so that the banking sector remains resilient and supportive of growth, without posing any challenge to financial stability.

The gross non-performing loans (NPLs) 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.

The 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 Other Depository Corporations (ODCs) stood at OMR24.9 billion at the end of October 2018, a rise of 7 per cent over the level witnessed a year ago.

Credit to the private sector increased by 5.9 per cent to OMR22 billion at the end of October 2018.

Of the total credit to the private sector, the non-financial corporate sector received 46.3 per cent, followed by the household sector (mainly under personal loans) at 45.4 per cent, financial corporations at 5.4 per cent and other sectors received the rest, at 2.9 per cent.

Aggregate deposits of ODCs grew by 4.7 per cent to OMR22.5 billion, with private sector deposits increasing by 2.5 per cent to OMR14.2 billion at the end of October 2018.

Sector-wise, the share of households was highest at 48.5 per cent in total private sector deposits, followed by non-financial corporations at 30.2 per cent, financial corporations at 18.7 per cent and other sectors at 2.6 per cent.

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