Arab News, Mon, May 27, 2024 | Dhu al-Qadah 19, 1445
Oman’s banking sector sees 2.9% rise in credit to $80bn by end of March
Oman:
Oman’s banking sector experienced a 2.9 percent rise in total credit, reaching
30.8 billion Omani rials ($80 billion) by the end of March, official data
showed.
In its monthly review of banking and monetary
developments, the Central Bank of Oman disclosed that credit to the private
sector rose by 3.6 percent year-on-year, reaching 25.9 billion rials by the end
of March.
Non-financial corporations held the largest share
of the total private sector credit, accounting for approximately 45.4 percent by
the end of March, followed closely by households at 45 percent.
Financial corporations constituted 5.8 percent of
the total, while the remaining 3.8 percent was allocated to other sectors.
Total deposits held with other depository
corporations witnessed a significant year-on-year growth of 11.7 percent,
reaching 30.3 billion rials at the end of March, while total private sector
deposits grew by 13.7 percent to 20.2 billion rials.
The increase in private sector credit and deposits
reflects robust economic activity and confidence in the financial system.
Regarding the sector-wise composition of private
sector deposits, household holdings contributed the most at 49.8 percent,
followed by non-financial corporations at 30.9 percent, financial corporations
at 16.5 percent, and other sectors at 2.8 percent.
The combined balance sheet of conventional banks
showed a year-on-year growth of 0.8 percent in total outstanding credit as of
the end of March.
Credit to the private sector increased by 1.6
percent, reaching 20.3 billion rials, while overall investments in securities
surged by 28.0 percent to 5.7 billion rials.
Investment in government development bonds
decreased by 17.1 percent to 1.8 billion rials, while investments in foreign
securities saw a dramatic increase of 139.0 percent to 2.3 billion rials.
Moreover, aggregate deposits in conventional banks
experienced significant growth, while government deposits declined. Public
enterprise holdings increased substantially, and private sector deposits rose.
Simultaneously, Islamic banks and windows
witnessed notable growth in total assets, financing, and deposits, underscoring
their expanding role within the banking system.
The report further highlighted that the nation’s
nominal gross domestic product declined by 2.8 percent at the end of the fourth
quarter of 2023, primarily due to a significant drop in the hydrocarbon sector
despite growth in the non-hydrocarbon sector.
However, real GDP increased by 1.3 percent during
the same period. Both the average oil price and daily production saw decreases,
while inflation remained minimal.