Muscat: The banking sector in the Sultanate continued to support growth in economic activities by providing credit and other banking services to all segments, especially to those within the non-oil activates and to SMEs.
An analysis of the combined balance sheet of conventional banks and Islamic banking entities (other depository corporations) provides the progress of financial intermediation in the Sultanate.
The total outstanding credit extended by other depository corporations (ODCs) stood at OMR25.7 billion at the end of May 2019, witnessing a year-on-year (YoY) growth of 6.7 per cent, according to the report issued by the Central Bank of Oman (CBO).
Credit to the private sector at OMR22.6 billion witnessed a growth of 4.8 percent at the end of May 2019.
Of the total credit to the private sector, the share of nonfinancial corporate sector stood at 45.6 percent, the household sector (mainly under personal loans) at 45.1 percent, while that of financial corporations and other sectors stood at 5.8 percent and 3.5 percent, respectively.
Total deposits held with ODC’s increased by 2.1 percent to OMR22.8 billion, with private sector deposits growing by 3.5 percent to OMR14.8 billion at the end of May 2019.
Sector-wise, the contribution of households in total private sector deposits was 50.2 percent, followed by non-financial corporations at 28.4 percent, financial corporations at 18.9 percent, and the other sectors at 2.5 percent.