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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Credit by depositories grows by 7.7 per cent

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MUSCAT: The banking sector in Oman continued to grow reasonably and met credit needs of all segments with special emphasis on the SME sector, supporting the economic activities including diversification initiatives.


The Central Bank of Oman (CBO) issued several regulatory amendments recently to boost liquidity and credit to create a stimulating business environment to spur growth in the economy.


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


The total outstanding credit extended by other depository corporations grew by 7.7 per cent to RO 24.1 billion as at the end of April 2018 from the level witnessed a year ago.


Credit to the private sector increased to 21.5 billion as at the end of April 2018. Of the tool credit to the private sector, the household sector stood at 45.5 per cent, the non-financial corporate sector at 46.1 per cent while financial corporations and other sectors obtained 4.9 per cent and 3.5 per cent, respectively.


Total deposits registered a growth of 2.3 per cent to RO 22.0 billion, with the private sector deposits growing by 1.8 per cent to RO 14.1 billion as at the end of April 2018.


Sector-wise, the contribution of households in the total private sector deposits was 49.6 per cent, followed by non-financial corporations at 29.3 per cent, financial corporations at 18.4 per cent, and the other sectors at 2.7 per cent. Review of the activities of conventional banks indicates that the total outstanding credit increased by 6 per cent to RO 20.9 billion as at the end of April 2018.


Credit to the private sector increased by 3.9 per cent to RO 18.5 billion.


Conventional banks’ overall investments in securities grew by 6.6 per cent to RO 3.1 billion. Investment in government treasury bills stood at RO 342.2 million at the end of April 2018, while investment in government securities inclusive of GDBs, Government Sukuk, and others stood at RO 1.4 billion.


— ONA


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