MUSCAT: Oman’s conventional banks have achieved a robust 8.26 per cent (or OMR1,479 million) year-on-year growth in credit disbursements, which stood at OMR19.38 billion by the end of July 2016. Of this, credit to the private sector increased by 10 per cent to reach OMR17.2 billion at the end of July2016, according to the monthly banking and monetary review released by the Central Bank of Oman (CBO) on Tuesday. “The banking sector remained resilient supporting economic diversification initiatives and credit needs. The total assets of conventional commercial banks increased by 4.2 per cent to OMR29.3 billion in July 2016from OMR28.1 billion a year ago,” said a monthly statement release.
The central bank report also said that the aggregate deposits held by conventional banks registered a modest growth of OMR93 million (or 0.51 per cent) to OMR18.43 billion by the end of July 2016, from OMR18.34 billion a year ago. The Central Bank of Oman has been continuously reviewing the liquidity situation and no significant pressures have been noticed in the banking system, the bulletin said.
The government deposits with conventional banks declined by 10.3 per cent to OMR4.8 billion. Deposits of public sector enterprises increased by 13.1per cent to OMR1.2 billion during the period ending July 2016. Private sector deposits, which constituted 65.9 per cent of total deposits with conventional banks, increased by 3.9 per cent to OMR12.2 billion in July 2016 from OMR11.7 billion a year ago. The core capital and reserves of conventional banks stood at OMR3.7 billion as at the end of the July 2016, a rise of 12.2 percent over the previous year.
The overall investment of conventional banks in securities stood at OMR2.6 billion as at the end of July 2016. Also, investments in government development bonds and government sukuk increased by 56.4 per cent over the year to OMR922.6 million at the end of July2016.
