In May 2024, Oman’s banking sector recorded a 3.2% year-on-year growth in total outstanding credit, reaching RO31.1bn. The Central Bank of Oman stated that credit to the private sector amounted to RO26.1bn, with shares from various sectors. While conventional banks reported slow lending growth, Islamic banking entities saw a significant 16.7% rise in financing.
Additionally, total deposits in the banking sector grew by 9.2%, reaching RO30.0bn, with a notable 14% increase in private sector deposits. Household deposits held the largest share, followed by non-financial corporations.
Interest rates also saw an increase, with the average deposit rate rising to 2.627% and the lending rate to 5.621% in May 2024. The Central Bank of Oman attributed this rise to an increase in the average repo rate for liquidity injection.
Overall, the banking sector in Oman is showing signs of growth and stability, with both conventional and Islamic banks playing crucial roles in the country’s financial landscape.
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