MUSCAT : The Central Bank of Oman (CBO) has issued the 12th edition of its Financial Stability Report. The report, released on August 6, 2024, reassures that short-term risks to financial stability in Oman remain low, as confirmed by positive ratings from all three major rating agencies.

The report underscores the banking sector’s strong capital buffers, which bolster confidence in its capacity to weather potential negative shocks. It also notes that banks have seen improved profitability metrics in line with economic recovery, with solid asset quality and ample liquidity reserves.

The Financial Stability Report includes findings from two annual surveys conducted by the CBO: the Systemic Risk Survey and the Credit Conditions Survey. The Systemic Risk Survey reflects continued confidence in Oman’s financial system, while the Credit Conditions Survey reveals a notable rise in housing loan demand, driven by economic growth, increased consumer confidence, and favorable lending conditions.

Additionally, Oman’s Composite Financial Stability Index shows positive trends, influenced by higher oil prices, improved debt sustainability, and favorable systemic risk indicators. However, the report also identifies emerging challenges related to climate change and cybersecurity, with the CBO actively developing policies to address these risks and enhance financial stability.

Since its inception in 2013, the Financial Stability Report has served as a key tool for the Central Bank of Oman to communicate financial sector conditions and trends, reinforcing its role in maintaining a stable and secure financial environment.

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