Latest news with #CentralBankofOman
Times of Oman
a day ago
- Business
- Times of Oman
CBO joins network for greening the financial system
Muscat: The Central Bank of Oman (CBO) has officially announced its membership in the Network for Greening the Financial System (NGFS), a global alliance of central banks and supervisory authorities aimed at enhancing the financial sector's resilience to climate-related and environmental risks. Launched during the "One Planet Summit" in Paris in December 2017 with eight founding members, the NGFS has since expanded into a worldwide network comprising over 160 central banks and regulatory bodies. The initiative seeks to collaborate with members in transforming the financial and banking systems into environmentally friendly and sustainable models. This is achieved through knowledge-sharing, cooperation, and the adoption of international best practices in developing regulatory frameworks to promote sustainability. The CBO's membership underscores its steadfast commitment to building a resilient, sustainable, and forward-looking financial system. This move aligns with Oman Vision 2040, the Sultanate of Oman's national strategy for a structured transition toward net-zero emissions, as well as the launch of the National Environmental Policy for Energy. As part of its strategic climate initiatives, the CBO has introduced a comprehensive regulatory framework and roadmap designed to advance sustainable and green finance in line with international standards and Oman's goal of achievingcarbon neutrality by 2050. These efforts include phased disclosure requirements for licensed financial institutions, alongside active participation in global climate initiatives, such as those led by the G20. Through this membership, the CBO joins a collaborative international effort to promote sustainable finance and strengthen the financial sector's readiness in addressing escalating challenges posed by climate change and ecosystem degradation. —— Ends/AH
Muscat Daily
10-06-2025
- Business
- Muscat Daily
Bank credit in Oman grows 9% to RO33.6bn in April
Muscat – Oman's banking sector recorded robust credit growth of 9.0% during the first four months of 2025, while deposits surged by over 9.3% year-on-year, according to the latest data from the Central Bank of Oman (CBO). Total outstanding credit extended by the banking sector – comprising both conventional and Islamic banks – rose by nine per cent to RO33.6bn as of the end of April 2025, compared to the same period in the previous year, the CBO stated in its monthly statistical bulletin. Of the total credit extended, loans to the private sector grew by 7.0%, reaching RO27.8bn. Non-financial corporations received the largest share of private sector credit, accounting for approximately 46.6% of the total, followed by the household sector at 44.0%. Financial corporations held a 5.6% share, while other sectors made up the remaining 3.7%. In the conventional banking segment, total credit grew by 7.9% year-on-year as of April 2025. Credit extended to the private sector by conventional banks increased by 5.2% to RO21.3bn, while their investments in securities rose by 2.1% to RO5.8bn, according to CBO figures. Investments in government development bonds by conventional banks rose by 6.2% year-on-year to RO2bn in April 2025, while investments in foreign securities increased by 3.7% to RO2.1bn over the same period. Deposits surge 9.3% Deposits across Oman's banking sector grew significantly by 9.3%, reaching RO32.8bn at the end of April 2025. Private sector deposits increased by 7.1% to RO21.5bn. Within this category, household deposits contributed the largest share, accounting for 50.3% of the total, followed by non-financial corporations at 30.4%, financial corporations at 17.0%, and other sectors at 2.3%. Conventional banks saw aggregate deposits rise by 6.1% year-on-year to RO25.7bn by the end of April 2025. Government deposits with conventional banks increased by 6.2% to RO5.8bn, while deposits from public enterprises grew by 11.4% to RO2.2bn. Private sector deposits, which represent 65.2% of total deposits at conventional banks, rose by 4.5% to reach RO16.8bn. According to the CBO, the weighted average interest rate on Omani rial deposits with conventional banks rose slightly from 2.580% in April 2024 to 2.594% at the end of April 2025. Meanwhile, the weighted average lending rate for the Omani rial decreased from 5.604% to 5.555% over the same period. The overnight Omani rial domestic interbank lending rate declined to 4.392% in April 2025, down from 5.212% a year earlier. This decrease is attributed to the reduction in the average repo rate for liquidity injections by the CBO, which fell to 5.0% from 6.0%, in line with the monetary policy direction of the US Federal Reserve. Islamic banking grows by 18% Oman's Islamic banking sector continues to maintain its strong growth trajectory in 2025, with double-digit increases in both credit and deposits. The total assets of Islamic banks and windows grew by 18.1% year-on-year, reaching RO8.9bn by the end of April 2025. Islamic assets now represent approximately 19.6% of the total assets within Oman's banking system. Islamic banking entities provided financing totalling RO7.2bn by the end of April this year, reflecting a 13.5% increase compared to the previous year. Total deposits held by Islamic banks and windows also surged by 22.6%, reaching RO7.1bn in April 2025.
Yahoo
06-06-2025
- Business
- Yahoo
Oman issues new regulatory framework for digital banks
The Central Bank of Oman (CBO) has issued a regulatory framework governing the licensing and operation of digital banks. The framework, effective 1 June 2025, applies to digital banks operating in the Sultanate of Oman and introduces regulatory relaxations along with certain business restrictions. It stipulates that applicants must take the form of either a locally incorporated joint-stock company (SAOC or SAOG) or a branch of a foreign bank that is subject to regulatory oversight in its home jurisdiction. Two categories of licences are defined, with Category 1 permitting banking operations without business limitations and requiring a minimum paid-up capital of OR30m. Category 2 allows limited operations and requires a minimum paid-up capital of OR10m, with capital requirements in both cases to be determined by the CBO Governor. Applicants must have experience in the fintech industry and possess the financial capacity to establish a digital bank. They must also maintain a team with adequate expertise, while all relevant individuals, including ultimate beneficial owners, board members and senior management, must meet the CBO's fit and proper criteria. In the case of foreign digital bank branches, applicants must obtain approval from their home supervisory authority and receive a no-objection to joint supervision from the same, while shell banks are explicitly prohibited. A licensed digital bank is required to establish a physical presence in Oman either as its principal place of business or, in the case of a foreign branch, as a registered office. Licensed digital banks must comply with all applicable laws and frameworks, including those related to anti-money laundering and terrorism financing in a fully digitalised environment. They must also adhere to frameworks for financial consumer protection, cybersecurity and resilience, digital onboarding and e-KYC, anti-fraud measures, and outsourcing rules, including the use of cloud services. "Oman issues new regulatory framework for digital banks " was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
04-06-2025
- Business
- Zawya
Digital banks in Oman get green-light from CBO
MUSCAT - The Central Bank of Oman (CBO) has issued a regulatory framework for the licensing and supervision of digital banks, marking a major step toward modernising the country's financial sector. The framework, which came into effect on June 1, 2025, is aligned with Oman Vision 2040. The framework allows digital banks to operate as either locally incorporated joint-stock companies (SAOC or SAOG) or as branches of foreign banks, subject to regulatory approval in their home jurisdictions. Two types of licenses will be offered. Category 1 requires a minimum paid-up capital of RO 30 million and allows full operations. Category 2 requires RO 10 million but comes with business limitations, including caps on customer deposits and corporate lending, and a prohibition on proprietary trading. These limits are waived during the first two years of operation. All digital banks must maintain a physical head or registered office in Oman. They may open administrative offices for customer support, but not traditional branches for transactions. Shareholding limits apply: individuals and their affiliates may hold up to 15 percent of voting shares; corporate bodies up to 25 percent; and holding companies up to 35 percent. Cross-ownership in multiple banks is restricted to 15 percent. Applicants must present a detailed five-year business plan covering digital services, target segments, profitability projections, and a financial inclusion strategy. The plan must outline IT architecture, cybersecurity readiness, and disaster recovery procedures. Digital banks are expected to adopt modern technologies such as AI, open banking, blockchain, and cloud computing. Omanisation targets start at 50 percent and rise to 90 percent by Year 5. The CBO mandates the submission of an exit plan alongside the license application. It must define conditions under which the bank would voluntarily cease operations, such as capital or profitability deterioration. The plan should address customer protection, risk triggers, and exit funding without regulatory assistance. Licensed digital banks must comply with the Banking Law 02/2025, National Payment Systems Law 08/2018, and AML Law 30/2016. They are also subject to digital onboarding rules, cybersecurity frameworks, consumer protection regulations, and fraud prevention protocols. The CBO may require independent technical assessments at the applicant's expense. Non-compliance could trigger enforcement measures, including license revocation. The CBO reserves the right to reject incomplete applications or withdraw approvals if information is found to be inaccurate.
Observer
03-06-2025
- Business
- Observer
IMF praises Oman's economic progress and fiscal discipline
MUSCAT: A visiting International Monetary Fund (IMF) mission has concluded its preliminary meetings with the Government of Oman as part of the 2025 Article IV Consultation. The discussions focused on recent economic, financial, and monetary developments, as well as structural reform progress in the Sultanate of Oman. The IMF commended Oman's economic performance, noting that real GDP grew by 1.7% in 2024—up from 1.2% in 2023—thanks to robust non-oil sector growth, particularly in manufacturing, logistics, tourism, and renewable energy. Growth is forecast to accelerate to 2.4% in 2025 and 3.7% in 2026, supported by the easing of OPEC+ production caps and ongoing economic diversification. Inflation remains well contained at just 0.9% year-on-year for the first four months of 2025. The Fund lauded Oman's prudent fiscal policy, which delivered a 3.3% budget surplus in 2024 despite rising infrastructure and public service investments. However, the surplus is projected to narrow to 0.5% of GDP in 2025 and 2026 due to lower oil prices, before improving again in the medium term. Public debt fell to 35.5% of GDP in 2024. The IMF highlighted Oman's continued fiscal reform momentum and targeted investments in priority sectors, praising the Oman Investment Authority's role in enhancing governance of state-owned enterprises. Oman's banking sector was described as strong, with high asset quality, solid capital and liquidity buffers, and sustained profitability. Credit to the private sector continues to expand, fueled by growing deposits and healthy net foreign assets. The Central Bank of Oman received praise for improving liquidity management and promoting financial sector development and inclusion. The external sector also showed strength, posting a current account surplus of 2.2% of GDP in 2024. A temporary deficit is expected in 2025–2026 due to softer oil prices and non-oil exports, but a return to surplus is anticipated as oil output rises. The IMF also welcomed progress in structural reforms, including tax system modernization and the Future Fund's success in attracting private investment. Ongoing investments in green hydrogen and renewables were also highlighted as key pillars of the Eleventh Five-Year Plan (2026–2030) and Oman Vision 2040. The Central Bank of Oman expressed appreciation for the IMF's assessment and reaffirmed its commitment to financial stability and a sustainable, diversified economy. — ONA
