Omani banks' credit fundamentals are recovering as pressures on the operating environment have eased and economic activity is gradually picking up amid higher oil prices, Fitch Ratings has stated in a new report.
Omani banks' credit fundamentals have been fairly resilient to the pandemic shock which caused a 3.2 per cent GDP contraction in 2020, according to Fitch. Performance metrics recovered substantially in 2021 and this is expected to continue in 2022, supported by higher interest rates, capital metrics will remain reasonably sound, while pressures on banks' funding and liquidity profiles have eased. This has been underpinned by government support measures combined with the recent rebound in oil prices, it noted.
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