Islamic banking entities provided financing to the extent of RO1.85 billion as at the end of February 2016 when compared to RO1.1 billion a year ago.
Total deposits held with Islamic banks and windows also registered a significant increase to RO1.59 billion in February 2016 from RO0.7 billion outstanding as at the end of February 2015.
The total assets of Islamic banks and windows combined, amounted to RO2.4 billion as at the end of February 2016 which constituted about 7.8 percent of the banking system assets.
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 Oman.
The total outstanding credit extended by the other depository corporations stood at RO20.5 billion as at the end of February 2016, a rise of 12.4 percent over the level witnessed a year ago.
Credit to the private sector increased by 14.9 percent to RO18.3 billion as at the end of February 2016. Of the total credit to the private sector, the share of the household sector (mainly under personal loans) stood at 46.6 percent, closely followed by the non-financial corporate sector at 45.3 percent, financial corporations at 5.2 percent and other sectors the remaining 2.9 percent.
Total deposits also registered a significant growth of 6.3 percent to RO19.4 billion as at the end of February 2016. Private sector deposits of the banking system registered a growth of 7.6 percent to RO12.75 billion as at the end of February 2016.
Sector-wise, the share of households was 50.5 percent of the total private sector deposit base, followed by non-financial corporations at 27.2 percent, financial corporations at 19.2 percent and the other sectors at 3.1 percent.
As at the end of February 2016, narrow money stock (M1) when measured on year-on-year basis, grew by 6.8 percent to RO5.2 billion. This rise was a result of increase in currency with the public by 6.6 percent coupled with increase in Rial Omani designated demand deposits by 6.8 percent.
Quasi-money (RO savings and time deposits, certificates of deposit issued by commercial banks, margin deposits (and foreign currency denominated deposits witnessed a growth of 8.5 percent during the period.
Broad money supply M2 (i.e. M1 plus quasi-money) stood at RO15.2 billion at the end of February 2016, up from RO14.1 billion a year ago, registering an increase of 7.9 percent during the period.
In respect of domestic interest rate structure of conventional banks, the weighted average interest rate on RO deposits firmed up from 0.952 percent in February 2015 to 0.980 percent in February 2016 while the weighted average RO lending rate decreased from 5.051 percent to 4.772 percent during the same period.
The overnight Rial Omani domestic inter-bank lending rate firmed up to 0.356 percent in February 2016 from 0.130 percent a year ago.