Muscat: The latest data on Oman’s banking sector reveals a positive trajectory. Total credit balances granted by traditional commercial banks experienced a notable uptick of 1.8 per cent. The 2.6 per cent surge in credit allocated to the private sector is particularly encouraging, amounting to RO 20.1 billion by January 2024.

Investment activities also witnessed significant strides, with total securities investments soaring by 28.1 per cent to approximately RO 5.7 billion during the same period. Notably, investments in foreign securities saw an exceptional spike of 156.3 per cent, reaching RO 2.4 billion, showcasing banks’ diversification strategies.

While investments in government development bonds witnessed a modest decline of 15 per cent, standing at RO 1.8 billion, the overall investment landscape remained robust, reflecting strategic shifts in asset allocation.

On the liabilities front, traditional commercial banks saw a substantial 12.3 per cent surge in total deposits, reaching RO 24.1 billion by January 2024. Government deposits increased marginally by 0.3 per cent to around RO 5.2 billion, while public sector institution deposits surged impressively by 60 per cent, reaching approximately RO 2.3 billion.

The most significant surge, however, was witnessed in private sector deposits, marking a remarkable 10.5 per cent increase to hit RO 15.9 billion, constituting a substantial 66 per cent of total deposits with traditional commercial banks