Non-oil sectors remain main driver of banking business

MUSCAT: The banking sector in Oman continued to support growth in economic activities by providing credit and other banking services to all segments. Non-oil sectors have remained the main driver of banking business and accordingly, banks are nurturing growth in non-oil economic activities with special emphasis towards the SME segment, according to the bulletin issued by the Central Bank of Oman (CBO).
An analysis of the combined balance sheet of conventional and Islamic banks (other depository corporations) provides the progress of financial intermediation undertaken by banks in Oman. The total outstanding credit extended by other depository corporations (ODCs) stood at RO 25.3 billion as at the end of February 2019, witnessing a growth of 6.2 per cent over the level a year ago.
Credit to the private sector increased by 4.7 per cent to RO 22.3 billion as at the end of February 2019.
Of the total credit to the private sector, the share of non-financial corporate sector stood at 46.2 per cent, the household sector (mainly under personal loans) at 45.2 per cent while that of financial corporations and other sectors stood at 5.3 per cent and 3.3 per cent, respectively.
Total deposits held with ODCs increased by 3 per cent to RO 22.7 billion, with private sector deposits growing by 1.2 per cent to RO 14.4 billion as at the end of February 2019. Sector-wise, the contribution of households in total private sector deposits was 50 per cent, followed by non-financial corporations at 30 per cent, financial corporations at 17.5 per cent, and the other sectors at 2.5 per cent. — ONA