(MENAFN - Khaleej Times) MUSCAT " The total assets of commercial banks in Oman grew by more than 11 per cent in the first seven months of the year, new figures released by the Central Bank of Oman (CBO) indicate.
Assets rose to RO15,263.7 million from RO13,668.8 million a year earlier, an increase of 11.7 per cent. Credit accounted for 67 per cent of the total assets and witnessed a gradual build-up, registering a year-on-year growth of 6.4 per cent at the end of July 2010.
Banks investments in various securities continued to remain significant with a growth of 14.4 per cent during the year. Of the total investment, CBO certificates of deposit accounted for nearly 72 per cent, reaching RO1,279 million.
Investments in other securities, such as government bonds, domestic shares and securities, and foreign securities, remained relatively low at around three per cent of total assets, suggesting the need to further develop and deepen the debt market in Oman, CBO said.
On the liabilities side, total deposits saw a year-on-year growth of 11.6 per cent to reach RO9,854.6 million, compared with RO8,833.5 million. Private sector deposits amounted to 70 per cent of the total, or RO6,869.4 million, up 7.9 per cent.
Government deposits with commercial banks increased by 28.7 per cent to RO2,207 million, while deposits of public enterprises rose by 3.2 per cent to RO668.3 million.
Core capital and reserves of banks stood at RO1 .83 billion, a rise of 12.4 per cent over the year.
Broad money supply (M2) witnessed a year-on-year growth of 6.3 per cent in July 2010 to RO8,097 million. Narrow money supply (M1) registered an annual growth of 10.9 per cent, primarily due to a 14 per cent increase in demand deposits and to a lesser extent because of the rise in currency held by the public at 2.7 per cent.
Unlike the marked increase seen under demand deposits, the quasi-money component (savings, time and foreign currency deposits) of broad money suypply registered a modest year-on-year growth of 4.3 per cent.