Banking credit in Oman climbs to RO 26.3 billion

Total outstanding credit extended by licenced commercial banks and Islamic banks in the Sultanate (together referred to as Other Depository Corporations/odcs) grew by 2.0 per cent to RO 26.3 billion as of end-august 2020, the Central Bank of Oman (CBO) stated in its latest monthly bulletin for August.

Credit to the private sector rose by 0.6 per cent Y-O-Y to RO 22.8 billion. Of the total credit to the private sector, the non-financial corporate sector and the household sector (mainly under personal loans) received a share of 46.4 per cent and 45.1 per cent respectively, while financial corporations received 5.1 per cent while other sectors got the remaining 3.4 per cent.

Total deposits held with ODCS reached RO 24 billion at the end of August 2020, increasing by 4.4 per cent from August 2019.

Total private sector deposits increased by 10.8 per cent to RO 16.5 billion. The share of households was largest at 50.6 per cent, followed by non-financial corporations at 31.7 per cent, financial corporations at 15.3 per cent and the other sectors at 2.4 per cent, the Bank said.

The combined balance sheet of conventional banks indicates a Y-O-Y growth of 1.2 per cent in total outstanding credit as of end-august 2020. Conventional banks’ credit to the private sector decreased marginally by 0.7 per cent to RO 18.8 billion. Conventional banks’ overall investments in securities amounted to RO 3.8 billion. Investment in Government Development Bonds increased by 15.1 per cent over the year to RO 1.7 billion. Banks also invested

RO 276.8 million in Government Treasury Bills, while their investments in foreign securities stood at RO 1 billion at the end of August 2020. Aggregate deposits held with conventional banks increased to RO 20.4 billion in August 2020, registering a growth of 4 per cent over the level a year ago.

Government deposits with conventional banks decreased by 16.9 per cent to RO 4.5 billion, while deposits of public enterprises increased by 14.6 per cent to RO 1.1 billion. Private sector deposits, which accounted for 70 per cent of total deposits with conventional banks, increased by 11.5 per cent to RO 14.3 billion.

Islamic banking entities provided financing of RO 4.1 billion at the end of August 2020, recording a growth of 6.6 per cent over that a year ago. Total deposits held with Islamic banks and Windows increased by 6.8 per cent to RO 3.6 billion. The total assets of Islamic Banks and

Windows stood at RO 4.9 billion and constituted about 14 per cent of the banking system’s assets as of end-august 2020, the bulletin added.