Banking sector resilient, aiding growth
Stressing on the role of banks, he said they were vital tools of the economic system and contribute to the development of individuals, society and country.
The total credit grants by banks, according to him, rose significantly at the end of June 2017. Similarly, the total deposits also showed significant increase in the same period.
“The ratios were a record during such a short period, showing good financial indicators by the Islamic bank’s windows in the Sultanate in terms of asset quality and provision coverage, capital profitability.”
“The banking sector in general has seen healthy competitive environment conducive to achieving desired financial objectives, investment and services sectors. Still the journey is long and there are many challenges… we are determined to continue our efforts,” he said.
The most important challenge faced by licensed banks in the Sultanate now, according to Al Zadjali, is to attract national savings to support the economy and continuing to meet the various economic activities in the adequacy and country.
“There is a need to encourage the small and medium enterprises, and support large ones as well to provide sufficient flexibility to deal with various economic changes, including the decline in oil prices. It is very important that the Islamic finance takes its central role in contributing to sustainable development and financial inclusion in accordance with the purposes of the law and the principle of risk sharing,” he said.
He said the Islamic banking institutions are doing well and proper awareness was being created through seminars, conferences and meetings. “It is essential, however, that the Islamic banking institutions worked hard to comply with legitimacy frameworks and avoid simulating traditional banking products. These institutions need to devise a variety of tools and financial products that allow them sufficient flexibility to respond to the needs of the public.”
The forum has dedicated three days for expert presentations on various business and financial issues and two days for workshops to build better understanding about new financial trends among the participants.