Fi­nan­cial sta­bil­ity of Oman re­mains in­tact, says CBO

Bank­ing sec­tor re­mains well cap­i­talised and prof­itable

Muscat Daily - - NATION -

Mus­cat - The Cen­tral Bank of Oman (CBO) has re­leased the fifth is­sue of the Fi­nan­cial Sta­bil­ity Re­port (FSR).

The FSR 2017 in­di­cated that im­prove­ment in oil prices and bet­ter un­der­stand­ing of the new oil price range has al­lowed bet­ter eco­nomic plan­ning by the pol­icy mak­ers, stated a press re­lease.

While ac­knowl­edg­ing the chal­lenges faced by the econ­omy, in­clud­ing nom­i­nal con­trac­tions in 2015 and 2016, it was noted that the fi­nan­cial sta­bil­ity in the sul­tanate re­mained in­tact.

“Mea­sured re­forms, in­clud­ing the pace of eco­nomic diver­si­fi­ca­tion, have been taken and poli­cies were put in place to in­crease rev­enues and re­duce ex­pen­di­tures. CBO con­tin­ues to main­tain a com­fort­able level of for­eign re­serves, which is suf­fi­cient to back-up the peg,” the FSR stated.

The FSR as­serted that the Omani bank­ing sec­tor re­mained well cap­i­talised and prof­itable with low NPLs ra­tio. The banks re­mained fairly liq­uid with­out any bout of se­ri­ous stress, and the credit growth re­mained healthy and the risks were well­con­tained.

It was fur­ther em­pha­sised that the stress tests also showed low sol­vency and liq­uid­ity risks for the bank­ing sec­tor. The re­port con­cluded that de­spite eco­nomic head­winds, on bal­ance, the over­all fi­nan­cial sta­bil­ity of the sul­tanate re­mained in­tact in 2016.

The FSR 2017 can be ac­cessed at CBO’s web­site.

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