Oman’s bank credit grows by 11.5% at OMR21.5 billion

Muscat: Total outstanding credit extended by the Oman’s conventional and Islamic banks stood at OMR21.5 billion as at the end of July 2016, a rise of 11.5 per cent over the same period a year ago, according to data released by the Central Bank of Oman (CBO).
The central bank further said that credit to the private sector increased by 13.3 per cent to OMR19.3 billion as at the end of July 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 45.7 per cent, financial corporations at 5.2 per cent and other sectors the remaining 3.1 per cent.
Total deposits registered a growth of 4 per cent to OMR20.3 billion as at the end of July 2016. Private sector deposits of the banking system registered a growth of 7.1 per cent to OMR13.2 billion as at the end of July 2016, the CBO said in its bulletin.
Sector-wise, the share of households was 48.7 per cent of the total private sector deposit base, followed by non-financial corporations at 28 per cent, financial corporations at 20 per cent and the other sectors at 3.3 per cent.
As at the end of July 2016, narrow money stock (MI) when measured on year-on-year basis, registered a marginal rise of 0.6 per cent to OMR5.4 billion.
On the other hand, Quasi-money (savings in Oman rials and time deposits, certificates of deposit issued by commercial banks, margin deposits and foreign currency denominated deposits) witnessed an appreciable growth of 10.6 per cent during the period.
Broad money supply M2 (that is, MI plus quasi-money) stood at OMR15.8 billion at end of July 2016, up from OMR14.8 billion a year ago, registering an increase of 7 per cent during the period.
In respect of domestic interest rate structure of conventional banks, the weighted average interest rate on Omani rial deposits firmed up from 0.910 per cent in July 2015 to 1.219 per cent in July 2016 while the weighted average in Omai rials lending rate marginally increased from 4.812 per cent to 4.929 per cent during the same period.
The overnight rial Omani domestic inter-bank lending rate firmed up to 0.300 percent in July 2016 from 0.122 per cent a year ago.