MUSCAT : Despite persistent global uncertainty, the CBO noted that Oman’s financial stability remains largely unshaken, backed by resilient banking institutions, prudent economic management, and rising international confidence.

According to the report, the Omani banking sector continues to demonstrate resilience, supported by sufficient capital reserves, high-quality assets, and adequate liquidity levels. Stress tests confirmed the sector’s capacity to withstand severe financial shocks, with all banks maintaining liquidity coverage ratios above regulatory requirements. Profitability in the banking sector remained stable, while non-banking financial institutions saw gradual expansion, reflecting their growing role in the economy.

The Composite Financial Stability Index revealed positive momentum, boosted by rising oil prices, improved debt sustainability, and lower systemic risks. International institutions echoed this confidence, with Moody’s and Standard & Poor’s upgrading Oman’s sovereign credit rating to investment grade, a move attributed to the country’s disciplined fiscal management and reduced public debt.

The Systemic Risk Survey showed sustained confidence in the financial system, while the Credit Conditions Survey pointed to stable lending trends despite minor easing in credit availability.

The CBO also highlighted progress in enhancing financial awareness, noting relatively high levels of financial literacy among the public and prudent financial behavior. To further strengthen the sector, the report detailed significant reforms, including the new Banking Law, a restructured CBO Board of Directors, and an amended Deposit Protection Law.

For all the latest news from Oman and GCC, follow us on Twitter, Instagram and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.