The total outstanding credit extended by conventional and Islamic banks (collectively known as other depository corporations or ODCs) grew by 3.3 per cent to RO 26.5 billion at the end of May 2020, the Central Bank of Oman (CBO) said in its monthly report for May 2020.
Credit to the private sector rose by 2.6 per cent to RO 23 billion. Of the total credit to the private sector, the non-financial corporate sector and the household sector (mainly under personal loans) received a share of 47.1 per cent and 44.2 per cent, respectively, while the financial corporations received 5.4 per cent and other sectors the remaining 3.3 per cent.
Total deposits held with ODCs reached RO 24.1 billion at the end of May 2020, increasing by 5.7 per cent from May 2019. Total private sector deposits increased by 9.3 per cent to RO 16.1 billion. When looking at sector-wise analysis of private sector deposits, the share of households was largest at 50.8 per cent, followed by nonfinancial corporations at 30.4 per cent, financial corporations at 16.2 per cent and the other sectors at 2.6 per cent.
The combined balance sheet of conventional banks indicates an annual growth of 2.4 per cent in total outstanding credit as on end-May 2020. Conventional banks’ credit to the private sector increased by 1.2 per cent to RO 19.3 billion. Conventional banks’ overall investments in securities amounted to RO 3.5 billion.
Investment in Government Development Bonds increased by 24.5 per cent over the year to RO 1.8 billion. Banks also invested RO 184.8 million in Government Treasury Bills, while their investments in foreign securities stood at RO 874 million at the end of May 2020. Aggregate deposits held with conventional banks increased to RO 20.5 billion in May 2020, registering a growth of 5.7 per cent over the level a year ago.
Government deposits with conventional banks decreased by 8.2 per cent to RO 4.9 billion, while deposits of public enterprises increased by 36.7 per cent to RO 1.4 billion. Private sector deposits, which accounted for 68 per cent of total deposits with conventional banks, increased by 8.7 per cent to RO 13.9 billion.
Islamic banking entities provided financing of RO 4.1 billion at the end of May 2020, recording a growth of 8.7 per cent over that a year ago. Total deposits held with Islamic banks and windows increased by 5.8 per cent to RO 3.6 billion. The total assets of Islamic Banks and Windows stood at RO 4.9 billion and constituted about 14 percent of the banking system’s assets as at end-May 2020.
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