Oman: Banking Sector Resilience

33 Pages Posted: 22 Mar 2010

See all articles by Pierluigi Bologna

Pierluigi Bologna

Bank of Italy

A. Prasad

International Monetary Fund (IMF)

Date Written: March 2010

Abstract

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

Suggested Citation

Bologna, Pierluigi and Prasad, Ananthakrishnan, Oman: Banking Sector Resilience (March 2010). IMF Working Paper No. 10/61. Available at SSRN: https://ssrn.com/abstract=1574609

Pierluigi Bologna (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Ananthakrishnan Prasad

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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