Outstanding credit disbursement grows at conventional banks

MUSCAT: Review of the activities of conventional banks indicates an annual growth in total outstanding credit disbursement of 5.6 per cent as at the end of February 2018. Credit to the private sector increased by 4 per cent to RO 18.5 billion. A bulletin released by the Central Bank of Oman (CBO) pointed out that conventional banks’ overall investments in securities grew by 11.7 per cent to RO 3.4 billion. Investment in government treasury bills stood at RO 1.35 billion. Aggregate deposits held with conventional banks increased by 2.1 per cent to RO 18.9 billion in February 2018 from RO 18.5 billion a year ago. Government deposits with conventional banks marginally declined by 0.1 per cent to RO 4.9 billion, while deposits of public enterprises increased by 4.9 per cent to RO 0.9 billion during the same period. Private sector deposits, which accounted for 66.5 per cent of the total deposits with conventional banks, increased by 0.8 per cent to RO 12.6 billion in February 2018 from RO 12.4 billion a year ago. The core capital and reserves of conventional banks as at the end of February 2018 stood at RO 4.6 billion. Islamic banking entities provided financing to the extent of RO 3.1 billion as at the end of February 2018 as compared to RO 2.6 billion a year ago. Total deposits held with Islamic banks and windows also registered a significant increase to RO 3.1 billion in February 2018 from RO 2.3 billion as at the end of February 2017. The total assets of Islamic banks and windows combined, amounted to RO 3.9 billion as at the end of February 2018, constituting about 12.2 per cent of the banking system assets. — ONA