Banks’ total assets see robust growth | Oman Observer

The banking sector showed a steady progress as regards credit growth, deposits and total assets consistent with sustained recovery of non-oil activities. The monthly bulletin released by the Central Bank of Oman (CBO) pointed out that the total assets of commercial banks increased by 7 per cent to RO 16,346.1 million in June 2011 compared to RO 15,274.1 million in June 2010.

Cash on hand and deposits of commercial banks with the CBO stood higher at RO 931.664 million at the end of June 2011 compared to RO 814.7 million in June 2010. Total credit grew by 12.6 per cent to RO 11,450.4 million in June 2011 and accounted for 70 per cent of total assets. Credit to government increased by 2 per cent in June 2011, credit to public enterprises and the private sector increased by 62.4 per cent and 8.6 per cent respectively. Commercial banks' overall investments in securities declined by 3.2 per cent to RO 1,814.6 million by June 2011 from RO 1,873.6 million a year ago.

Of the total outstanding investments, commercial banks' investments in CBO CDs decreased to RO 1,163 million in June 2011 from RO 1,443 million a year ago, whereas investments in government development bonds increased to RO 285.7 million from RO 143.7 million during the same period. Investments in foreign securities increased by 45.7 per cent to RO 220.6 million from RO 151.3 million.

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