Oman's Islamic banking sector witnesses 12.6pc surge in assets
Monday, 21 August 2023
RIYADH, Aug 20 (Arab News): Oman's Islamic banking sector witnessed a 12.6 per cent year-on-year surge in total assets reaching 7 billion Omani rials ($18.25 billion), data issued by the country's central bank showed.
This figure accounts for approximately 17.2 per cent of the Gulf Cooperation Council country's overall banking system assets as of the end of June 2023.
The data revealed that Islamic banking entities extended financing amounting to 5.8 billion rials by June 2023, marking a 12.8 per cent growth compared to the previous year. Additionally, total deposits held with Islamic banks and windows rose by 10.5 per cent, reaching 5.2 billion rials.
In its banking and monetary developments report for June 2023, the central bank disclosed that the broad money supply, or M2, marginally increased by 2.8 per cent, totaling 21.4 billion rials.
Despite a 4.8 per cent dip in narrow money, M1, the expansion of M2 supply was attributed to a 5.9 per cent uptick in non-cash assets.
The central bank data also indicated that during the same period, components of M1 exhibited varying trends. Currency with the public rose by 2.5 per cent, while demand deposits in Omani rial experienced a decline of 6.9 per cent.
In economic terms, M2 refers to the total amount of money, including physical currency, bank deposits, savings accounts, and other forms of easily accessible cash in circulation within an economy.
On the other hand, M1 is a more specific subset of money supply that includes only the most liquid and readily accessible forms of money - physical currency and coins, along with demand deposits. These are the funds available in checking accounts that can be withdrawn immediately.
The M2 and M1 numbers are general indicators of the overall money supply in the economy. The report also revealed that the total outstanding credit balance granted by conventional commercial banks had shown a year-on-year growth of 5.1 per cent, adding that credit to the private sector increased 5.4 per cent to reach 20.2 billion rials.