Conventional banks’ credit rises by 5.8%
The rise has come on the back of increased lending to the private sector in Oman
MUSCAT: A review of the activities of conventional banks indicates an annual growth in total outstanding credit of 5.8 per cent as of the end of August 2018, mainly due to an increase in credit to the private sector by 3.2 per cent to OMR18.7 billion from OMR18.1 billion in August 2017, according to the bulletin released by the Central Bank of Oman (CBO).
Conventional banks’ overall investments in securities grew by 5 per cent to OMR3 billion, of which investments in Government Treasury Bills was for OMR267.8 million at the end of August 2018. Over the year, investments in government securities (inclusive of GDBs and government sukuk), and foreign securities increased significantly by 15.2 per cent and 15.8 per cent, respectively.
Aggregate deposits held with conventional banks increased by 1.6 per cent to OMR19.1 billion in August 2018 from OMR18.8 billion a year ago.
Government deposits with conventional banks went up by 3.8 per cent to some OMR5.3 billion in August 2018 from OMR5.1 billion during the same period in 2017, while deposits of public enterprises witnessed a growth of 8.3 per cent to OMR1.1 billion during this period.
Private sector deposits with conventional banks, which accounted for 65.1 per cent of total deposits, at around OMR12.5 billion in August 2018 remained almost at the same level as in August 2017. The core capital and reserves of conventional banks at the end of August 2018 stood at OMR4.1 billion, increasing by some nine per cent from last year.