‘Robust growth seen in Islamic banking’
The total assets of Islamic banks increased from OMR3.299 billion in March 2017 to OMR3.991 billion in March 2018.
MUSCAT: Tahir bin Salim Al Amri, Executive President of the Central Bank of Oman (CBO), affirmed that Islamic banks in the Sultanate have demonstrated their ability to make their mark on the Omani banking sector in the last six years.
In an interview with Oman News Agency (ONA), he said that the latest data showed the remarkable growth of the Islamic banking business in the Sultanate during the last period. The total assets of Islamic banks increased from OMR3.299 billion in March 2017 to OMR3.991 billion in March 2018, comprising a rise of 21 per cent. The deposits with the Islamic banking sector also increased from OMR2.385 billion in March 2017 to OMR3.158 billion at the end of March 2018, a growth of 32.4 per cent.
As a result, the balance of financing granted by the Islamic banking units increased from OMR2.632 billion in March 2017 to OMR3.183 billion at the end of March 2018, recording a growth of 20.9 per cent, he said.
The market share of the Islamic banks and windows accounted for 12.4 per cent of the total assets of the banking sector and accounted for 13.2 per cent and 13 per cent of the total financing and deposits in the banking sector, respectively, as of the end of March 2018.
He said that the CBO looks into all its decisions with a comprehensive perspective, including allowing Islamic banking activity in the Sultanate, as it is keen to provide an equal opportunity for the banking sector by allowing traditional local banks to open specialised Islamic banking windows, alongside the two Islamic banks offering Islamic banking services.
These steps enhanced the competition and improved the quality of banking services provided to customers, in addition to attracting more deposits and granting funding, to raise the level of financial coverage in the Sultanate, he added.
He noted that both Islamic banks and Islamic banking windows have been able to achieve good growth in the last period. The combined Islamic banking units accounted for 12.4 per cent of the total assets of the banking sector at the end of March 2018.
He explained that financial inclusion is closely linked to economic development and growth. Access to financial services plays a vital role in promoting entrepreneurship and supporting the development of the national economy. He pointed out that the Islamic banking windows contributed to 64 per cent of the total funding provided by the Islamic banking sector to the private and public sectors.