Oman: Banking Sector Resilience
33 Pages Posted: 22 Mar 2010
Date Written: March 2010
This note assesses the impact of the global financial risks on Oman's banking system and highlights the remaining risks. It concludes that the liquidity and prudential measures introduced by the authorities mitigated the adverse effects of the crisis on the banking system. Banks continue to make profits despite higher provisioning. Stress tests confirm the resilience of the banking system to credit and market risks. Banks have limited exposure to derivatives and the majority of the off-balance sheet exposures are conventional and relatively secure. Interest rate risks are within an acceptable range.
Keywords: Banking sector, Capital, Central bank policy, Corporate sector, Credit risk, Financial crisis, Financial risk, Financial systems, Global Financial Crisis 2008-2009, Liquidity management, Oman, Profit margins
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