GulfBase Live Support
Leave a message and our representative will contact you soon
14/08/2017 06:02 AST
Oman’s bank interest rates have shown a marked year-on-year growth due to the tight liquidity situation in the financial system.
According to the latest monthly statistics released by the Central Bank of Oman (CBO), the weighted average Omani rial lending rate increased to 5.132 per cent per annum in May 2017, from 4.835 per cent for the same period of last year.
Also, the interest rate of the Omani rial deposits increased to 1.611 per cent from 1.163 per cent during the period under review.
However, sources said liquidity in the banking system is slightly better than last year. The liquidity situation is also reflected in the short-term money market. For instance, the overnight Omani rial domestic inter-bank lending rate stood at 0.616 per cent in May, 2017.
The average repo rate for liquidity injection by the central bank stood at 1.507 per cent per annum in May 2017.
The Omani government has raised debt funds from the domestic market by way of development bond issues in the recent past to partially meet the budget deficit. This year, the government’s target is to raise OMR600 million, which is to partially cover the budget deficit, as well as to repay OMR200 million towards a maturing bond. Subsequently, the net local borrowing is estimated at OMR400 million. A major portion of this debt fund has already been raised from the domestic market in different tranches. This is expected to put pressure on liquidity within the financial system, in general, and the banking sector, in particular. Also, the government is heavily depending on external borrowing for funding its OMR3 billion projected deficit.
Since a major portion of the debt fund is from the overseas market, the domestic financial market does not have the pressure.
The overall deposits of financial institutions in Oman were up by 9.5 per cent to OMR21.5 billion by end-May 2017. Private sector deposits in the banking system registered a growth of 5.4 per cent to OMR13.7 billion as of the end of May 2017, according to the latest monthly report released by CBO.
The total outstanding credit extended by financial institutions grew by 5.8 per cent to OMR22.5 billion as of the end of May 2017. Of this, credit to the private sector increased by 7 per cent to OMR20.4 billion as of the end of May 2017.
Islamic banks
Islamic banks and window operations of conventional banks in Oman provided financing to the extent of OMR2.7 billion by end-May 2017, compared with OMR2.1 billion a year ago. Total deposits held with Islamic banks and windows also registered a significant increase to OMR2.6 billion in May 2017, from OMR1.8 billion outstanding as of the end of May 2016.
The total assets of Islamic banks and windows amounted to OMR3.5billion as of the end of May, 2017, which constituted about 11 per cent of the banking system assets.
Times of Oman
Ticker | Price | Volume |
---|---|---|
SABIC | 114.77 | 5,915,941 |
SAMBA | 26.98 | 1,138,683 |
DARALARKAN | 13.47 | 74,648,349 |
05/04/2018
Saudi Arabia's Public Investment Fund (PIF) has signed an agreement with Six Flags to develop and design an amusement park in Riyadh. Six Flags, the world’s leading international amusement park compa
Arab News
05/04/2018
In an exclusive interview with Arab News, Turki Mohammed Al-Shehri explains how an expanding renewables industry will boost employment as well as pave the way for a greener future.
A massiv
Arab News
05/04/2018
Dubai’s residential property market continued to soften in the first three months of this year, in line with analysts’ forecasts, with rental values recording a more pronounced fall than sales prices
The National
05/04/2018
Buoyed by a strong oil price of $70 per barrel, Saudi Arabia’s Tadawul shot up by over 6 per cent in March 2018, according to Kuwait Financial Centre’s (Markaz’s) recently released Monthly Markets Re
Times of Oman
05/04/2018
Qatar banks’ combined credit facilities to real estate sector rose by QR17bn to QR147.7bn in 2017. The banks’ credit to various sectors stood at QR911bn at the end of 2017, up from QR839bn recorded i
The Peninsula