According to the monthly bulletin of the Central Bank of Oman (CBO), the total credit balance granted by conventional commercial banks witnessed a 5.1 percent increase. The balance reached OMR20.2 billion ($52.4 billion) at the end of June 2023.
The total investment of traditional commercial banks in securities experienced a decline of 5.9 percent, amounting to approximately OMR4.6 billion by the end of June last year. Simultaneously, investment in government development bonds (GDBs) decreased by 5.1 percent compared to the same period in 2022, reaching OMR2.1 billion. However, their investments in foreign securities witnessed a significant increase of 90.8 percent, reaching OMR1.3 billion.
Regarding liabilities, there was a 3.1 percent increase in total deposits with conventional commercial banks. By the end of June 2023, the deposits reached OMR22.2 billion.
In the meantime, private sector deposits witnessed a 2.1 percent rise, reaching OMR14.8 billion by June 2023. These deposits accounted for 66.4 percent of the total deposits with conventional commercial banks.
The broad money supply experienced a year-on-year growth of 2.8 percent, reaching OMR21.4 billion by the end of June 2023. However, cash in its narrow sense decreased by 4.8 percent.
The increase in cash within the broad money supply was attributed to the rise in quasi-money, which grew by 5.9 percent. Quasi-money includes savings deposits, term deposits in Rial Omani, certificates of deposit issued by banks, margin accounts, and all deposits in foreign currency within the banking sector.
During the same period, cash with the public increased by 2.5 percent, while demand deposits decreased by 6.9 percent.
Islamic banks and windows
By the end of June 2023, the total assets of Islamic banks and windows combined exhibited growth, reaching approximately OMR7 billion. This accounts for 17.2 percent of the total assets of the banking sector in the Sultanate of Oman, representing a 12.6 percent increase compared to the same period last year.
Furthermore, the total balance of financing granted to Sharia-compliant banking entities in Oman involved in this activity experienced a 12.8 percent increase, reaching OMR5.8 billion.
Deposits with Islamic banks and windows also saw a rise of 10.5 percent, reaching approximately OMR5.2 billion by the end of June this year.
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