Financial stability of Oman remains intact, says CBO
Banking sector remains well capitalised and profitable
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.