MUSCAT: While acknowledging the challenges faced by the national economy and the need to continue to push for deeper reforms, the Financial Stability Report (FSR) by the Central Bank of Oman (CBO) notes that Sultanate is on the right track of further economic and fiscal reforms, and expressed satisfaction that financial stability in the Sultanate remained intact.
The report released on Thursday indicates that improvement in oil prices and progress on economic diversification were the main catalysts of economic growth
in the Sultanate.
“The twin deficit has been considerably eased with both fiscal and current account deficits significantly declining in 2018. Merchandise trade surplus also reached its four-year high,” the
FSR states.
The FSR asserts: “The Omani banking sector remained robust with sound asset quality, and strong capital buffers. Banks posted reasonable profits that allowed organic growth, and strengthened capital buffers”. Moreover, “The liquidity and solvency stress tests show that the financial institutions in Oman are resilient to any plausible challenges.’’
Drawing attention to a battery of measures taken in 2018 to fine- tune the regulations, the FSR stresses the apex bank’s capability, will, and resolve to take policy actions to help banks support the real sector growth and diversification efforts without compromising financial stability.
FSRs are an important communication tool by central banks across the globe to disseminate information on potential points of distress in the domestic economy and the financial system. In Oman, publication of FSR was made a part of the overall macro-financial surveillance
system since 2013. — ONA
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