Bank lending in Oman rises 3.8 per cent in June; deposits up 4.2 per cent

Published 17 Aug,2021 via Muscat Daily - Total outstanding credit extended by Oman’s banking sector grew by 3.8 per cent year-on-year to reach RO27.3bn at the end of June 2021, according to the latest statistics released by the Central Bank of Oman (CBO).

Bank credit to the private sector showed a slow growth of 0.8 per cent at RO23.2bn in June this year compared to the same period of 2020, the data showed.

The shares of non-financial corporate sector and household sector (mainly personal loans) in total private sector credit stood at 46.5 per cent and 45.3 per cent, respectively, at the end of June 2021. The share of financial corporations was 4.8 per cent and other sectors received the remaining 3.4 per cent of total private sector credit.

The combined balance-sheet of Oman’s conventional banks showed a year-on-year growth of 2.1 per cent in total outstanding credit as of end-June 2021.

In contrast, Islamic banking entities provided financing of RO4.6bn at the end of June, recording an year-on-year growth of 12.7 per cent. Total assets of Islamic banks and windows increased by 16 per cent to RO5.7bn and constituted about 15.1 per cent of the banking system assets as of June 2021.

On the deposits side, the CBO data indicated that total deposits held with the Omani banks (conventional and Islamic) registered an year-on-year growth of 4.2 per cent to reach RO24.9bn at the end of June 2021. Total private sector deposits increased by 6.5 per cent to RO17.4bn.

In terms of sectorwise composition of private sector deposits, the share of households deposits stood at 51.4 per cent, followed by non-financial corporations at 32.1 per cent, financial corporations at 14.1 per cent and other sectors at 2.4 per cent. Aggregate deposits held with the conventional banks increased by 1.8 per cent to RO20.8bn at end-June 2021 compared to a year ago period.

Government deposits with conventional banks witnessed a decrease of 11.2 per cent at RO4.3bn and deposits of public enterprises increased by 13.3 per cent to RO1.2bn.

© Apex Press and Publishing. Provided by SyndiGate Media Inc. (Syndigate.info)

DISCLAIMER: This content is provided to us “as is” and unedited by an external third party provider. We cannot attest to or guarantee the accuracy of information provided in this article from the external third party provider. We do not endorse any views or opinions included in this article.