Financial Performance Overview
Omani Banking Sector
Overview
Overview of the Omani Banking Sector
The Omani Banking Sector comprises 20 licensed banks, of which:
16 conventional commercial banks: 7 locally incorporated and 9 branches of foreign banks
► 2 state-owned specialised banks: Oman Housing Bank and Oman Development Bank
► 2 full-fledged locally incorporated Islamic banks
► The Omani banking sector has been growing consistently in the past decade with banking assets reaching
over OMR 41 billion in March2023.
OMR 34 billion for conventional banks and OMR 7 billion for Islamic banks
➤ Islamic banking sub-sector has been growing considerably in the past years
▸ The banking sector has limited reliance on foreign funding, mainly due to strong domestic deposit base
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بنك ظفار
BankDhofar
Regulatory Framework set by The Central Bank of Oman ("CBO")
Several regulatory and supervisory initiatives have been implemented by the CBO to develop a
competitive and sound banking system
Robust bank capitalization levels
► Implementation of Basel III regulation
► Introduction of a Prompt Corrective Action framework (the PCA) in 2005, which makes it mandatory
for banks to take corrective actions if their total capital adequacy ratio falls below a certain level
Credit quality and provisioning - implementation of IFRS 9 for measuring and booking credit related
provisions
-
Funding and liquidity directing Omani banks towards a deposit-based funding and significant liquidity
buffers
►NSFR (minimum of 100%) and LCR (minimum of 100%): key reforms to maintain a stable funding
profile and a sound liquidity level
OMR billion
34
36
Assets, Deposits and Loans of Omani Banks
36
39
39
41
30
28
29
25
26
27
27
26
26
23
24
24
2018
2019
2020
Total Assets
Total Deposits
Source: CBO Monthly Statistical Bulletin March 2023
2021
Total Loans
OMR billion
4.9
19
4.4
Islamic Banking Assets of Omani Banks
CAGR: 7.8%
6.4
6.5
5.9
5.2
2022
Mar-2023
2018
2019
2020
2021
2022
Mar-23
Source: CBO Monthly Statistical Bulletin March 2023
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