Total deposits at Omani banks rise 5.9% to OMR22 billion

MUSCAT: The banking sector in the Sultanate continued to witness reasonable growth and supported the economic diversification initiatives including credit needs of all segments with added emphasis towards the small and medium enterprise (SME) sector.

The Central Bank of Oman (CBO) issued several regulatory amendments to boost liquidity and credit to create a stimulating business environment to spur growth in the economy.

The combined balance sheet of conventional and Islamic banks (other depository corporations) taken together, provides a complete overview of the financial intermediation taking place in the banking system in the Sultanate.

Total deposits registered a growth of 5.9 per cent to OMR22 billion, with private sector deposits growing by 3.8 per cent to OMR14.2 billion at the end of February 2018.

The total outstanding credit extended by other depository corporations stood at OMR23.8 billion at the end of February 2018, a growth of 7.3 per cent over the level witnessed a year ago.

Credit to the private sector increased by 6 per cent to OMR21.3 billion at the end of February 2018. Of the total credit to the private sector, the household sector (mainly under personal loans) stood at 45.7 per cent while financial corporations and other sectors obtained 4.8 per cent and 3.3 per cent, respectively.

Sector-wise, the contribution of households in the total private sector deposits was 48.8 per cent, followed by non-financial corporations at 29.7 per cent, financial corporations at 19.1 per cent, and other sectors at 2.4 per cent.