MUSCAT: The State Council held its third meeting for this year under the chairmanship of Shaikh Abdulmalik bin Abdullah al Khalili, Chairman, on Tuesday.
The State Council discussed the Bank Deposit Protection Bill referred to the State Council by the Council of Ministers.
The chairman of the State Council said that the session was held to discuss the Bank Deposit Protection Bill in accordance with the provisions of Article 49 of the Council of Oman Law in addition to reviewing some topics related to the work of the council.
The State Council explained that the Bank Deposit Protection Bill will be one of the main elements for maintaining confidence in the banking system and enhancing financial stability. The draft law is part of the financial safety network which provides protection for depositors. The draft law is quite important in terms of ensuring the Sultanate of Oman’s commitment and its keenness to keep pace with effective deposit systems and the basic systems and principles set by the international bodies and organisations concerned with the protection of bank deposits.
The State Council stated that the Bank Deposit Protection Bill is also aimed at keeping pace with the amendments to the banking law promulgated by Royal Decree No 114/2000, which allowed the practice of banking business in accordance with Islamic Sharia and the need to provide a protection cover for Islamic deposits.
The Bank Deposit Protection Bill also aims to provide a protection cover on deposits in a manner that encourages saving and boosts confidence in the soundness of the financial conditions of the banking sector in the Sultanate of Oman. It also aims to reduce the effects of systemic risks in the banking sector and enhance financial stability. — ONA
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