Muscat – Bank credit score development in Oman accelerated to just about seven per cent in February 2023 as in comparison with beneath 5 per cent credit score development recorded in 2022, in line with the Central Bank of Oman.
Whole excellent credit score prolonged by the banking sector (each standard and Islamic banks) grew by 6.Eight per cent to RO29.8bn as of February 2023 in opposition to the identical month of the earlier 12 months, CBO mentioned in its month-to-month bulletin.
Of the full excellent credit score, financial institution credit score to the personal sector demonstrated elevated development of 5.Three per cent year-on-year to succeed in RO24.8bn. Non-financial companies obtained the very best shares of the full personal sector credit score, at roughly 46.1 per cent at end-February 2023, adopted by family sector at 44.7 per cent. The share of economic companies was 5.6 per cent whereas different sectors obtained the remaining 3.7 per cent of whole personal sector credit score.
Standard banks’ whole excellent credit score grew by 5.Four per cent year-on-year in February this 12 months. Standard banks’ credit score to the personal sector elevated 2.9 per cent to RO19.7bn whereas their total investments in securities dropped by 14 per cent to RO4.5bn, the CBO information confirmed.
Banks’ funding in authorities growth bonds elevated by 1.7 per cent year-on-year to RO2.2bn in February, whereas their investments in overseas securities rose by 31.7 per cent to RO1.1bn.
Alternatively, whole banking sector deposits in Oman grew by 2.9 per cent to RO26.6bn on the finish of February 2023 in opposition to the identical interval a 12 months in the past.
Whole personal sector deposits inched up by 0.53 per cent to RO17.5bn. By way of sector-wise composition of personal sector deposits, the most important contribution was from family deposits at 51.Eight per cent, adopted by non-financial companies at 28.6 per cent, monetary companies at 16.Eight per cent and different sectors at 2.Eight per cent.
Combination deposits held with the standard banks elevated by 1.5 per cent year-on-year to RO21.7bn at end-February 2023. Non-public sector deposits, which accounted for 66.7 per cent of whole deposits with standard banks, decreased by 1.Zero per cent as of February 2023 to succeed in RO14.5bn.
Authorities deposits with standard banks witnessed a rise of 4.7 per cent at RO5.1bn and deposits of public enterprises elevated by 21 per cent to RO1.6bn.
As per the CBO information, the weighted common rate of interest on Omani rial deposits with standard banks witnessed a rise from 1.964 per cent at end-February 2022 to 2.125 per cent at end-February 2023. The weighted common Omani rial lending charge decreased from 5.450 per cent to five.358 per cent over the identical interval.
In the meantime, the in a single day Omani rial home inter-bank lending charge jumped to 4.730 per cent in February 2023 from 0.430 per cent a 12 months in the past. That is an final result of the rise in the typical repo charge for liquidity injection by the the CBO to five.241 per cent from 0.5 per cent a 12 months in the past, shifting with US Federal Reserve charge, the central financial institution mentioned.
Islamic financing grows 13.5%
Whole belongings of Islamic banks and home windows in Oman elevated by 8.Eight per cent on a year-on-year foundation to succeed in RO6.5bn on the finish of February 2023.
Islamic belongings now represent about 16.Three per cent of the full banking system belongings in Oman as of the end-February 2023.
Islamic banking entities offered financing of RO5.5bn on the finish of February 2023, recording a development of 13.5 per cent over {that a} 12 months in the past. Whole deposits held with Islamic banks and home windows elevated by 9.6 per cent to RO4.9bn.
Oman’s Islamic banking trade is at the moment marking its 10th anniversary.
The sultanate is among the fastest-growing Islamic financing markets in the world. The fast development of Islamic banking belongings in Oman has strongly outpaced the expansion in standard banking belongings in latest years.
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