MUSCAT: Total credit extended by Omani banks, including Islamic financial institutions, stood at OMR21.7 billion at the end of August 2016, a rise of 11.4 per cent over the same period last year, according to the monthly bulletin released by the Central Bank of Oman (CBO). Credit to the private sector increased by 13.4 per cent to OMR19.5 billion as at the end of August 2016. Of the total credit to the private sector, the share of the household sector (mainly under personal loans) stood at 46 per cent, closely followed by the non-financial corporate sector at 45.6 per cent, financial corporations at 5.2 per cent and other sectors the remaining 3.2 per cent.
Total deposits registered a growth of 6.3 per cent to OMR20.7 billion at the end of August 2016. Private sector deposits of the banking system registered a growth of 7.1 per cent atOMR13.1 billion at the end of August 2016. Sector-wise, the share of households was 49 per cent of the total private sector deposit base, followed by non-financial corporations at 28 per cent, financial corporations at 19.8 per cent and the other sectors at 3.2 per cent.
As of end August 2016, narrow money (M1), when measured on year-on-year basis, registered a marginal drop of 1.3 per cent to OMR5.2 billion. Also, quasi money (rial Omani savings and time deposits, certificates of deposit issued by commercial banks, margin deposits and foreign currency denominated deposits) witnessed an appreciable growth of 15.5 per cent during the period. Broad money supply M2 (i.e. M1 plus quasi-money) stood at OMR16 billion at the end of August 2016, up from OMR14.6 billion a year ago, registering an increase of 9.5 per cent during the period.
In respect of domestic interest rate structure of conventional banks, the weighted average interest rate on RO deposits firmed up from 0.895 per cent in August 2015 to 1.300 per cent in August 2016 while the weighted average RO lending rate increased from 4.791 per cent to 5.005 percent during the same period. The overnight Rial Omani domestic inter-bank lending rate firmed up to 0.403 per cent in September 2016 from 0.217 per cent a year ago.
