Oman’s Banking Sector Shows Growth in Credit and Deposits
The Central Bank of Oman recently released statistics showing a 3.8% year-on-year growth in total outstanding credit extended by the country’s banking sector, reaching RO31.4bn as of June 2024. Within this total, credit to the private sector increased by 3.4% to RO26.3bn, with non-financial corporations and the household sector being the largest recipients.
Conventional banks saw a 2.3% increase in total outstanding credit in June 2024, with credit to the private sector rising by 1.6% to RO20.5bn. Moreover, investments in securities saw significant growth while investments in government development bonds decreased.
On the deposits front, total deposits in Oman’s banking sector grew by 11.6% to RO30.7bn, with private sector deposits increasing by 14.8% to RO20.7bn. Islamic banking assets also saw a substantial increase, reaching RO7.8bn and forming about 18.1% of the total banking system assets in Oman.
Interest rates in Oman experienced a slight rise during the first half of the year, with the CBO attributing the increase in the domestic inter-bank lending rate to US Federal Reserve rate hikes.
Key Highlights:
- Total outstanding credit: RO31.4bn
- Private sector deposits: RO20.7bn
- Islamic banking assets: RO7.8bn
- Interest rate increase: from 2.313% to 2.651% (deposits) and from 5.434% to 5.581% (lending)
Overall, Oman’s banking sector is showing positive growth in both credit extension and deposits, reflecting a healthy financial landscape.