Dip in oil prices pulls down nominal GDP

The credit extended by conventional banks increased YOY by 2.9 per cent as of end-august 2019, with credit to the private sector growing by 1.2 per cent to RO 18.9 billion. Conventional banks’ total investments in securities increased YOY considerably by 12.6 per cent to RO 3.4 billion at the end of August 2019.

Investment in Government Treasury Bills stood at RO 245.3 million. Aggregate deposits of conventional banks increased by 2.4 per cent to RO 19.6 billion at the end of August 2019 from RO 19.1 billion a year ago. Government deposits increased YOY by 3.5 per cent to RO 5.4 billion, while deposits of public enterprises decreased YOY by 7.5 per cent to RO 1 billion during the period under review.

Private sector deposits increased YOY by 2.8 per cent to RO 12.8 billion and constituted 65.4 per cent of total deposits with conventional banks.

The core capital and reserves of conventional banks stood at RO 4.9 billion as of end-august 2019.

The financing by Islamic banking entities continued to expand and stood at RO 3.9 billion at the end of August 2019, higher than RO 3.4 billion a year ago.

Total deposits held with Islamic banks and windows also increased to RO 3.4 billion from RO 3.1 billion a year ago. The total assets of Islamic banks and Windows combined amounted to RO 4.7 billion and constituted about 13.6 per cent of the banking system assets at the end of August 2019.

With regard to monetary aggregates, the narrow money (M1) decreased marginally by 0.4 to RO 5.2 billion at the end of August 2019, while quasi money (Omani Rial saving and time deposits, certificates of deposit issued by banks, margin deposits and foreign currency denominated deposits) increased YOY by 6.6 per cent to RO 12.1 billion during this period.

Broad money supply M2 (M1 plus quasi-money) grew YOY by 4.5 per cent to RO 17.3 billion during the period under review over the level a year ago.