Strict rules keep Oman’s banks on even keel

Oman’s banks, though small compared with many of their regional counterparts, have thus far had a fairly benign crisis, due in part to what analysts say is one of the strictest regulatory regimes in the Gulf.

They have managed to sidestep international problems, such as investments in complicated US debt-backed securities, and more regional concerns, such as exposure to two troubled Saudi conglomerates whose financial woes have sent shockwaves throughout the Gulf.

The net profit of commercial banks in Oman rose almost 10 per cent last year to OR234.1m ($609m), according to the central bank. While local banks have since felt some pain from last year’s financial meltdown, the authorities’ crisis-fighting efforts have been relatively moderate.