Credit to private sector in Oman rose 13.1 per cent

Muscat: Credit to the private sector in the Sultanate of Oman increased by 13.1 per cent to OMR19.2 billion at the end of June 2016. Of the total credit to the private sector, the share of the household sector (mainly under personal loans) stood at 46 per cent, closely followed by the non-financial corporate sector at 45.9 per cent, financial corporations at 5.3 per cent and other sectors the remaining 2.8 per cent.
Total deposits registered a modest growth of 1.8 per cent to OMR20.1 billion at the end of June 2016. Private sector deposits of the banking system registered a growth of 5.1 per cent to OMR12.9 billion at the end of June 2016.
Sector-wise, the share of households was 50.1 per cent of the total private sector deposit base, followed by non-financial corporations at 26.7 per cent, financial corporations at 19.8 per cent and the other sectors at 3.4 per cent.
At the end of June 2016, narrow money stock (M1) when measured on year-on-year basis, registered a marginal fall of 0.9 per cent to OMR5.4 billion.
On the other hand, quasi-money (RO savings and time deposits, certificates of deposit issued by commercial banks, margin deposits and foreign currency denominated deposits) witnessed an appreciable growth of 8.9 per cent during the period.
Broad money supply M2 (i.e. M1 plus quasi-money) stood at OMR15.55 billion at end of June 2016, up from OMR14.76 billion a year ago, registering an increase of 5.4 per cent during the period.
In respect of domestic interest rate structure of conventional banks, the weighted average interest rate on RO deposits firmed up from 0.885 per cent in June 2015 to 1.182 per cent in June 2016 while the weighted average RO lending rate marginally decreased from 4.859 per cent to 4.854 per cent during the same period.
The overnight Rial Omani domestic inter-bank lending rate firmed up to 0.412 per cent in June 2016 from 0.131 per cent a year ago.
Also, the combined balance sheet of conventional and Islamic banks (other depository corporations) taken together, provides a complete overview of the financial intermediation taking place in the banking system in the Sultanate. The total outstanding credit extended by the other depository corporations stood at OMR21.5 billion as at the end of June 2016, a rise of 11.7 per cent over the level witnessed a year ago.