Traditional commercial banks in the Sultanate of Oman experienced continued growth in credit and investments during the period from June 2023 to June 2024, according to a bulletin issued by the Central Bank of Oman (CBO). Total credit granted by banks increased by 2.3 percent, with credit to the private sector rising by 1.6 percent to reach OMR20.5 billion by the end of June 2024. Investments in securities also saw a significant increase of 22.4 percent, reaching about OMR5.6 billion by the end of the same period.
However, there were some fluctuations in specific investment areas. Investment in government development bonds (GDBs) decreased by 8.3 percent to reach OMR1.9 billion, while investments in foreign securities increased substantially by 67.9 percent to reach OMR2.2 billion by the end of June 2024. On the liabilities side, total deposits with conventional commercial banks increased by 10.9 percent to reach OMR24.7 billion by the end of June 2024.
Government deposits with commercial banks saw a slight decrease of 0.9 percent to reach about OMR5.3 billion, while deposits of public sector institutions increased by 12.1 percent to reach about OMR1.8 billion during the same period. Private sector deposits, on the other hand, experienced a significant growth of 11.5 percent, reaching OMR16.5 billion in June 2024, representing 66.8 percent of total deposits in conventional commercial banks.
The increase in credit and investments by traditional commercial banks in Oman reflects a growing economy and confidence in the banking sector. As the private sector continues to expand, banks are offering more credit to businesses and individuals, leading to a higher level of total credit granted by banks. Investments in securities are also increasing, indicating a willingness to take on more risk and potentially higher returns.
Despite the overall growth in deposits, there were some fluctuations in specific areas such as government and private sector deposits. This could be due to various factors such as changes in government spending or fluctuating market conditions. Overall, the increase in deposits shows a healthy level of confidence in traditional commercial banks and their ability to safely store and grow funds for depositors.
As traditional commercial banks in Oman continue to grow and adapt to changing market conditions, it will be important for them to maintain a balance between offering credit, making investments, and managing deposits effectively. By staying agile and responsive to the needs of their customers, these banks can continue to play a key role in supporting economic growth and stability in the Sultanate of Oman.
