MUSCAT : Oman’s financial system remains resilient despite mounting global uncertainty, supported by strong banking capital, liquidity and profitability, the Central Bank of Oman said in its 2026 Financial Stability Report.
The banking sector maintained a capital adequacy ratio of 18.8% and a liquidity coverage ratio of 195%, while non-performing loans stood at about 4.4%, the report said.
Return on assets reached 1.5% and return on equity stood at 10.1%. Stress tests showed banks could absorb adverse shocks while keeping capital and liquidity above regulatory requirements.
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The central bank said geopolitical developments, uncertainty over global trade policies, cyber threats and growing external risks required continued proactive measures to safeguard financial stability.
Oman’s broader economic and financial conditions continued to improve, supported by prudent fiscal policies, a stronger external position and progress in fiscal sustainability, according to the report.
Those improvements contributed to sovereign credit rating upgrades by international agencies and strengthened confidence in the economy’s ability to withstand challenges, it said.
The composite financial stability index remained in positive territory, reflecting stronger macroeconomic conditions, robust banking performance and low systemic risk.
A systemic risk survey also showed continued confidence among market participants in the stability and resilience of Oman’s financial system, despite heightened awareness of domestic and global risks.
Islamic banking assets grew 9.9%, accounting for 19.6% of total banking sector assets, the report said.
Credit conditions remained favourable for economic activity, with demand for corporate and household borrowing expected to stay strong alongside continued prudent lending standards.
Assets held by non-bank financial institutions increased 9%. However, the sector remained relatively small, limiting the systemic risks it posed to the wider financial system.
The central bank identified cyber resilience as a supervisory priority as financial services become increasingly digital. It said it was strengthening regulatory frameworks and the sector’s readiness to address cyber risks.
The bank said it would continue to use proactive macroprudential policies, strengthen risk monitoring and develop regulatory and supervisory frameworks to support financial stability and sustainable economic growth.
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