MUSCAT, SEPT 14 - The total outstanding credit extended by other depository corporations (ODCs) — encompassing commercial banks and Islamic Windows — grew by 1.7 per cent to RO 26.2 billion at the end of July 2020, according to the Central Bank of Oman (CBO).
Credit to the private sector rose by 1.1 per cent to RO 22.8 billion, the apex bank stated in its monthly review of banking and monetary developments for July 2020.
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 46.4 per cent and 45 per cent respectively, while the financial corporations received 5.3 per cent and other sectors the remaining 3.4 per cent, the Central Bank said.
Total deposits held with ODCs reached RO 23.8 billion at the end of July 2020, increasing by 3.5 per cent from July 2019. Total private sector deposits increased by 10.4 per cent to RO 16.5 billion. When looking at sector-wise analysis of private sector deposits; the share of households was largest at 50.9 per cent, followed by non-financial corporations at 31.1 per cent, financial corporations at 15.6 per cent and the other sectors at 2.4 per cent.
The combined balance sheet of conventional banks indicates an annual growth of 0.6 per cent in total outstanding credit as on end-July 2020. Conventional banks’ credit to the private sector decreased marginally by 0.3 per cent to RO 18.9 billion. Conventional banks’ overall investments in securities amounted to RO 3.9 billion.
Investment in Government development Bonds increased by 21.3 per cent over the year to RO 1.8 billion. Banks also invested RO 265.8 million in Government Treasury Bills, while their investments in foreign securities stood at RO 1.1 billion at the end of July 2020.
Aggregate deposits held with conventional banks increased to RO 20.2 billion in July 2020, registering a growth of 3.2 per cent over the level a year ago. Government deposits with conventional banks decreased by 15 per cent to RO 4.5 billion, while deposits of public enterprises increased by 2 per cent to RO 1.1 billion. Private sector deposits, which accounted for 70.3 per cent of total deposits with conventional banks, increased by 10.6 per cent to RO 14.2 billion. Islamic banking entities provided financing of RO 4.1 billion at the end of July 2020, recording a growth of 7.3 per cent over that a year ago. Total deposits held with Islamic banks and windows increased by 4.8 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 per cent of the banking system’s assets as at end-July 2020.
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