Oman banking system outlook remains stable, says Moody's - Business Intelligence Middle East - bi-me.com - News, analysis, reports

The outlook for the Omani banking system remains stable, reflecting its remoteness from and relative resilience to the recent global economic turmoil, says Moody's Investors Service in its new banking system outlook on Oman.

The stable outlook also incorporates the challenges faced by the banks to expand their franchise and maintain good credit quality metrics in a small, narrow and highly concentrated market.

The global financial crisis posed minimal risks for the performance and ratings of Omani banks, as Oman is an introverted market and local banks have little exposure to western markets. The Omani economy remained resilient throughout the downturn and is likely to experience growth in 2010, which the rating agency believes will improve the Omani banks' operating conditions.