Question

explain how the financial system works in Oman?

Answer 1

Promote the development of banking institutions which will ensure the maintenance of monetary and financial stability, contribute to the economic, industrial and financial growth and enhance the position of the Sultanate in international financial affairs”.

The Central Bank of Oman (CBO), established under the Law, adopts a sound licensing policy and prudential regulations and supervision, set proactively, as means to maintain monetary and financial stability, to contribute to the growth and to enhance the Sultanate’s image and reputation. CBO’s efforts will encompass the study of macroeconomic and sectoral dynamics in conjunction with financial soundness indicators and external developments to establish linkages and evolve a suitable model for the behavior of the financial system. The approach and practices, of course, undergo needed periodical reviews for improvement. Prudential requirements are set/re-set in response to changes in needs.

Oman’s financial system consists, mainly, of conventional and Islamic banks, finance and leasing companies, money exchange establishments, investment/ brokerage companies, insurance companies and pension funds.

Entities, coming under the jurisdiction of the CBO, are banks, finance and leasing companies and money exchange companies licensed by it.