Friday, March 29, 2024 | Ramadan 18, 1445 H
clear sky
weather
OMAN
25°C / 25°C
EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Credit to pvt sector rises 11.9pc up to Oct-end

0-central-bank-of-oman
0-central-bank-of-oman
minus
plus

MUSCAT: The low oil prices have brought to the fore several challenges to the Omani economy and the authorities continue to monitor the situation closely, taking appropriate policy measures when warranted.


With the hydrocarbon sector still fundamental to the economy, the oil prices have impacted overall economic activity adversely, according to a report released by the Central Bank of Oman (CBO).


Preliminary national accounts data from the Sultanate shows that the nominal GDP declined by 11.1 per cent during the first half of 2016 compared to the same period last year.


Nominal GDP derived from the petroleum sector contracted by 32.9 per cent and that from the non-petroleum sector registered a marginal decrease of 1.6 per cent.


The Omani crude oil registered an average price of $38.3 per barrel during January-September 2016 compared to $59.8 per barrel to similar period last year.


The fiscal situation and the current account balance in the Balance of Payments came under the pressure during the year and the Government focused on the appropriate financing of the deficits.


Average annual inflation remained moderate at 1.04 per cent during January-October 2016.


The banking sector remained resilient supporting the economic diversification initiatives and credit needs.


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


The total outstanding credit extended by the other depositary corporations stood at RO 21.9 billion as at the end of October 2016, a rise of 10.2 per cent over the level witnessed a year ago.


Credit to the private sector increased by 11.9 per cent to RO 19.7 billion as at the end of October 2016.


Of the total credit to the private sector, the household sector (mainly under personal loans) stood at 46.1 per cent closely followed by the non-financial corporate sector at 45.7 per cent, financial corporations at 5 per cent and other sectors the remaining 3.2 per cent. Total deposits registered a growth of 5 per cent to RO 20.5 billion as at the end of October 2016.


Private sector deposits of the banking system registered a growth of 4.4 per cent to RO 13 billion as at the end of October 2016.


Sector-wise, the share of households was 49 per cent of the total private sector deposit base, followed by non-financial corporations at 28.3 per cent, financial corporations at 19.5 per cent and the other sectors at 3.2 per cent.


Review of the activities of conventional banks denotes a fairly robust annual growth in total outstanding credit of 7.1 per cent as at the end of October 2016.


Credit to the private sector increased by 9.6 per cent to reach RO 17.6 billion as at the end of October 2016.


Conventional banks’ overall investments in securities stood at RO 2.9 billion as at the end of October 2016.


Investment in Government Development Bonds and Government Sukuk increased by 31.6 per cent over the year to RO 989 million at the end of October 2016.


Banks also invested RO 406.9 million in Government Treasury Bills as at the end of October 2016. — ONA


SHARE ARTICLE
arrow up
home icon