About Us | Services | Daily Rates Laws & Regulations |  Investment |  Publications Currency | Payment and Settlement Systems  | Contact Us

Government Development Bonds 51 Auction Results   (22/12/2016)

news

news

All Banks to be closed for Mawlid Al Nabawi   (11/12/2016)

CBO Announces 51st GDB Issue Worth RO 150 Million   (1/12/2016)

CBO-UAB Organize Workshop on "Capital Planning and Liquidity under Basel III"   (21/11/2016)

46th National Day: Two-Day Holiday Announced   (17/11/2016)

CBO's Quality Department Obtains ISO 9001:2015 CERTIFICATION   (15/11/2016)

CBO Issues Guidelines on Net Stable Funding Ratio (NSFR) and NSFR Disclosures   (15/11/2016)

High Sharia Supervisory Authority Holds Second Meeting of the Year   (07/11/2016)

50th Issue of GDB Evokes Huge Response   (29/9/2016)

All Banks to be closed for New Islamic Year Day   (26/9/2016)

CBO Board Holds Its Third Meeting of the Year   (25/9/2016)

CBO Announces Issue of Uncut Currency Note Sheets   (20/9/2016)

Eid-Al-Adha Holiday for Banks Announced   (05/9/2016)

CBO Announces 50th GDB Issue Worth RO 100 Million   (31/8/2016)

Review of Banking and Monetary Developments - June 2016   (10/8/2016)

CBO Releases Fourth Financial Stability Report

CBO Releases Annual Report 2015

BM 1145: CBO Issues Guidelines on Impairment of equity investments classified as Available for Sale   (29/6/2016)

Statement from the Central Bank of Oman: Introduction of a new Omani Rial Denomination and Discontinuing the Distribution of new 100 Baisas and 500 Baisas Denominations during the Eid Holidays   (22/6/2016)

CBO Board Holds Its Second Meeting of the Year   (21/6/2016)

Ramadan: All Banks to Work From 9 am Till 1 pm   (07/6/2016)

The Sultanate Issues a Detailed Amended Law to Combat Money Laundering and Financing of Terrorism   (05/6/2016)

CBO-UAB Organize Workshop on Restructuring of Bank Loans   (30/05/2016)

news

news

CBO's 49th GDB Issue Oversubscribed   (19/04/2016)

CBO Raises Maximum Limit of Investments by Licensed Banks in GDB and Sukuk   (12/04/2016)

High Sharia Supervisory Authority Meeting Held   (04/04/2016)

CBO Issues Revised Guidelines for Reserve Against Deposits   (30/03/2016)

Lord Mayor of London Visits CBO   (29/03/2016)

CBO to Host Workshop on "Facilitating the implementation of the IFSB Standards"   (27/03/2016)

CBO Announces 49th GDB Issue Worth RO 100 Million   (21/03/2016)

CBO Advises Public to Refrain from Defiling National Currency   (13/03/2016)

CBO Releases Mid-Year Review of Oman Economy   (01/03/2016)

48th GDB Issue Results Declared   (17/01/2016)

CBO Announces 48th GDB Issue Worth RO 100 Million   (02/02/2016)

CBO Issues Advisory on SMEs Definition   (12/01/2016)




News

Government Development Bonds 51 Auction Results   (22/12/2016)

Monetary Operations Department (MOD) released the auction results of the 51st Government Development Bonds on Thursday, December 22nd 2016.

The 51st GDB issue worth RO 150 million received a massive response from investors and the auction was successfully oversubscribed. Applications worth RO 267,982,600 were received as against the announced issue value of RO 150 million.

The average accepted yield for the 51st GDB issue is 5.57% with an equivalent price of RO 99.470. The highest accepted yield was 5.68% at a price of RO 98.640, while the lowest accepted yield was 5.00% with a corresponding price of RO 103.900.

The 10-year Bond will be issued on 27th December 2016, while it will mature on 27th December 2026 carrying a coupon rate of 5.5 % p.a. For full details please read the auction results .

Top

news

Read More

Top

news

Read More

Top

All Banks to be closed for Mawlid Al Nabawi   (11/12/2016)

On the occasion of Mawlid Al Nabawi Al Sharif for the Hijri Year 1438, all the Banks operating in the Sultanate shall remain closed on Monday, 12th December 2016 (12th Rabie Al Awal 1438 H).

A circular from H.E. The Executive President's office advised that the banks shall reopen for their routine business Tuesday, 13th December 2016 (13th Rabie Al Awal 1438 H).

"We take this opportunity to express our best wishes to all members of the Banking Sector on this occasion," stated H.E The Executive President in the circular.

Top

CBO Announces 51st GDB Issue Worth RO 150 Million   (1/12/2016)


news

The Central Bank of Oman has announced a new Government Development Bonds issue worth OMR 150 million with a maturity period of 10 years. The current issue will carry a coupon rate of 5.5 per cent per annum.

According to a media release from CBO the issue will be open for subscription between 11th December to 18th December, 2016 while the auction will be held on Tuesday, 21 December 2016. The issue settlement date will be Tuesday 27th December, 2016.

Interest on the new bonds will be paid semiannually on 27th June and 27 December, every year until maturity date on 27th December 2026.

The 51st GDB issue is open to all investors, residents and non-residents (irrespective of their nationality).

The investors are required to apply for these bonds only through the competitive bidding process and they should submit their bids through the commercial licensed banks operating in the Sultanate.

However, investors with applications of OMR1 million and above can directly submit their bids to CBO after getting them endorsed from their respective banks, the CBO statement advised.

The release further informed that the bonds which are direct and unconditional obligations of the Government of Oman can be used as a collateral security to obtain loans from any local licensed bank. They can also be traded at prevailing market rates through the Muscat Securities Market (MSM).

The details of the bonds allotted will be recorded in the register maintained by the Muscat Clearing & Depositary Company. Prospectus and application forms can also be obtained from any commercial licensed bank operating in the Sultanate.

For further details and prospectus, Kindly Check below links:

Press Release (Englsih)

Press Release (Arabic)

Prospectus (English)

Prospectus(Arabic)

Application Form (English)

Application Form (Arabic)

Top

CBO-UAB Organize Workshop on "Capital Planning and Liquidity under Basel III"   (21/11/2016)


news

news

Mr. Ali Hamdan Al-Raisi, VP Banking Oversight at the Central Bank of Oman, inaugurated the proceedings of the specialized banking workshop organized by CBO in collaboration with the Lebanon based Union of Arab Banks (UAB). This training program, the second of its kind this year is titled: "Capital Planning and Liquidity under Basel III". The workshop will continue from 20th to 22nd November 2016 at Al-Bustan Palace Ritz Carlton Hotel.

The three-day workshop will focus on discussing internal capital planning processes and capital adequacy, as well as the ability to maintain sufficient capital to withstand severe liquidity stress and to align the capital base with the bank's risk assessment. The workshop will also address methods of handling low liquidity issues during crises and guidelines prescribed by Basel III on adhering to the new capital components and new liquidity criteria. Eminent speaker from UAB Mr. Rabih Nehme, Head of Risk Assessment Department, Banking Control Commission of Lebanon (BCCL), held the proceedings of the workshop.

(Arabic Version)

Top

46th National Day: Two-Day Holiday Announced   (17/11/2016)

On account of the 46th National Day all banks operating in the Sultanate shall remain closed for two days - Wednesday, 23rd November 2016 and Thursday, 24th November 2016.

A circular from H.E. The Executive President's office advised that the banks shall reopen for their routine business from Sunday, 27th November 2016.

"We take this opportunity to express our best wishes to all members of the Banking Sector on this occasion," H.E. said in his greetings to the Banking Sector in the country.

Top

CBO's Quality Department Obtains ISO 9001:2015 CERTIFICATION   (15/11/2016)

The Central Bank of Oman has obtained ISO 9001:2015 Certification the latest edition - for its Quality Management Department following successful completion of Audit by M/s Bureau Veritas- the Certification Body from UK. The Certificate was formally handed over to H.E Hamood Sangour Al Zadjali, The Executive President of CBO by the CEO of Bureau Veritas on Tuesday, November 15th 2016. The scope of certification included process reengineering, training, Quality Assurance of IT Strategic Projects, Monitoring of services and implementation of QMS Standards/best practices within the organization.

The Pre-assessment Audit (Otherwise called as 'Stage -1 Audit'), carried out on the 21st August 2016, focused on assessment of documentation. The Certification Audit (Otherwise termed as Stage-2 Audit) was carried out on the 12th October 2016 to assess compliance of the department's processes to the ISO 9001:2015 Standard. The auditors found Quality Management Department's documentation and the process implementation as fully compliant with the requirement of the ISO 9001:2015 standard without major/minor non-conformities.

H.E. The Executive President complimented QMD staff members for the successful implementation of the Project in a short time span and for utilizing Omani expertise and cadres in the Department, without engaging any consultant, in line with CBO continuous efforts to develop the potential of Omani cadres.

H.E. The Executive President informed that the project was carried out in continuation of the Bank's effort to promote quality and enhance services within the organization, as CBO received ISO 9001:2008 Certification for its Currency Management Department last year.

H.E. informed that enhancing service excellence has been a constant quest at Central Bank of Oman and the present certification is one more step in that direction.

H.E expressed his joy with this achievement which coincides with the Sultanate's celebrations of the 46th National Day. H.E. added that establishment of Quality Management Department in the Bank was one of the strategic initiatives as proposed by the Board of Governors for enhancing value for both external and internal stakeholders.

In the end, H.E expressed hope that adoption of international standards and best practices will help in fostering quality culture and bringing long term benefit to the organization.

Press Release (Arabic)

Top

CBO Issues Guidelines on Net Stable Funding Ratio (NSFR) and NSFR Disclosures   (15/11/2016)

The Central Bank of Oman has issued detailed guidelines on NSFR (Net Stable Funding Ratio) and its related disclosures.
In a BM Circular 1147 issued recently, H.E. The Executive President of CBO said that the NSFR guidelines were based on the guidelines issued by the Basel Committee on Banking Supervision.

Drawing attention to the BM Circular 1127 (dated December 24, 2014) on the framework on Liquidity Coverage Ratio (LCR) and LCR disclosure standards, H.E. reminded that in the same Circular (BM 1127) CBO had mentioned that separate instructions would follow regarding the Net Stable Funding Ratio standard (NSFR).

H.E. further reminded that the standard for LCR became effective from January 1, 2015, with a minimum ratio of 60% and increasing by 10% every year thereafter till it reaches a minimum of 100% by 2019.

Similarly, H.E. advised that the standard for NSFR will become effective from January 1, 2018, with a minimum ratio of 100%. As in the case of LCR, the NSFR will have to be maintained both at the level of Islamic banking windows and at consolidated level, H.E. said.
He said that banks are advised to continue to submit the prescribed monthly return on NSFR to our Banking Surveillance Department as per the format indicated in the guidelines.

Full NSFR guidelines can be accessed here

Top

shria

High Sharia Supervisory Authority Holds Second Meeting of the Year   (07/11/2016)

The High Sharia Supervisory Authority (HSSA) held its second meeting of 2016 on Monday 7th Safar, 1438 H (7th November 2016) at the premises of Central Bank of Oman. The meeting was chaired by Shaikh Dr. Kahlan Bin Nabhan Al Kharoosi and attended by all of its members.

The Authority made detailed deliberations on the issues presented to it, covering various Sharia aspects relating to Islamic banking business in Oman and gave its opinions in the light of discussions.

The Authority also met with the members of Sharia Supervisory Boards (SSBs) of Islamic banks and Islamic Banking Windows of conventional banks. The meeting discussed the progress of Islamic banking in Oman, challenges faced by the industry, need for market awareness and the key role of SSBs in training and awareness of Islamic banking.

Top

50th Issue of GDB Evokes Huge Response   (29/9/2016)

The Central Bank of Oman's 50th issue of Government Development Bonds worth RO 100 million received a massive response from investors. The issue received applications in excess of over RO 95.97 million at RO 195.97 million, as against the Issue value of RO 100 million.

The amount received in excess of the stipulated issue was paid back to the concerned parties and only a total of RO 100 million were allotted in government bonds. For full details please read the auction results .

Top

All Banks to be closed for New Islamic Year Day   (26/9/2016)

On the occasion of the New Hijri Year 1438H, all the Banks operating in the Sultanate shall remain closed on 1st of Muharram 1438H, as and when announced by respective authorities.

A memo from H.E. The Executive President's office which informed about the holiday for the banking sector, also expressed best wishes to all members of the banking community.

Top

CBO Board Holds Its Third Meeting of the Year   (25/9/2016)

The Central Bank of Oman's Board of Governors held their third meeting of this year on Sunday, 25th September 2016. The meeting was chaired by H.E. Dr. Ali bin Mohammed bin Moosa, Deputy Chairman of CBO's Board of Governors.

In the meeting the Board reviewed various issues on its agenda, including the Economic and Financial report up to 30th June 2016, as well as the activity report of CBO's Departments during the period under review. The annual Budget of the College of Banking and Financial Studies (CBFS) for 2016-2017 was also reviewed and endorsed by the Board.

The action taken by the Central Bank of Oman and licensed banks operating in Oman with regard to the financing of small and medium enterprises (SMEs) was also reviewed by the Board. Additionally, CBO's financial position as at end of August 2016 and the performance of CBO's external investments during the period under review also came up for Board scrutiny during the meeting.

The Board also examined the financial and administrative matters of CBO and has taken necessary decisions in this regard.

Press Release (Arabic)

Top

CBO Announces Issue of Uncut Currency Note Sheets   (20/9/2016)

The Central Bank of Oman is pleased to announce the issue of uncut currency notes sheets of four different denominations. A press release issued here on Tuesday, September 20, 2016, informed that the current issue of uncut sheets include those of 100 baisa, half-rial (500 baisa), the RO 1 (Commemorative Bank Note of 2005), the New RO. 1 (Commemorative Bank Note of 2015) and the RO. 5 bank note sheet.

The press release further informed that the banknotes in these sheets are legal tender for their face value, and that they are available for sale at the CBO premises.

The 100 baisa uncut sheet of 60 notes can be bought at a price of RO. 8 Rials, the Half-Rial uncut sheet of 40 notes can be purchased at a price of RO. 25. The RO. 1 (Commemorative banknote of 2005) uncut Sheet of 40 notes is available at a price of RO. 50, and the RO. 1 (Commemorative banknote of 2015) with 45 notes can be fetched at a price of RO. 60. The RO. 5 uncut sheet with 40 notes is available at a premium of RO 225.

Press Release (English)

Press Release (Arabic)

Top

Eid-Al-Adha Holiday for Banks Announced   (05/9/2016)

On the occasion of Eid Al Adha Al Mubarak, all the banks shall remain closed from Sunday, September 11th 2016 (9th Dhul-Hijjah 1437h), until Thursday, September 15th 2016 (13th Dhul-Hijjah 1437h).

A circular from H.E. The Executive President's office said that all banks shall resume their normal business from Sunday, September 18th 2016 (16th Dhul-Hijjah 1437h). In the Circular, H.E. also expressed his best wishes to all the members of the banking community.

Top

CBO Announces 50th GDB Issue Worth RO 100 Million   (31/8/2016)

The Central Bank of Oman (CBO) has announced its 50th issue of Government Development Bonds (GDBs) worth RO 100 million on Wednesday, August 31st 2016. The new issue has a maturity period of six years and it will carry a coupon rate of 5 per cent per annum.

According to a media release from CBO's Monetary Operations Department (MOD), the issue will be open for subscription from Sunday, September 18th, 2016 to Monday, September 26th 2016, while the auction will be held on Wednesday, September 28th 2016. The issue settlement date will be Monday, October 3rd 2016. The release further stated that the interest on the new bonds will be paid semi-annually on April 3rd and October 3rd every year until the maturity date on October 3rd, 2022.

It may be noted that subscription is open to all investors, residents and non-residents, irrespective of their nationality. The investors are required to apply for these bonds only through the competitive bidding process and they should submit their bids through the licensed banks operating in the Sultanate.

However, investors with applications of RO 1 million and above can submit their bids directly to CBO after getting them endorsed from their banks.

The release further informed that the bonds which are direct and unconditional obligations of the Government of Oman can be used as a collateral security to obtain loans from any local licensed bank. They can also be traded at prevailing market rates through the Muscat Securities Market (MSM).

For further details and prospectus, Kindly Check below links:

Press Release (Englsih)

Press Release (Arabic)

Prospectus (English)

Prospectus(Arabic)

Application Form (English)

Application Form (Arabic)

Top

Review of Banking and Monetary Developments - June 2016   (10/8/2016)

In the backdrop of low crude oil prices in the global markets and sluggish global growth, the Sultanate of Oman exhibited slowdown in economic activities during 2015. Nominal GDP contracted by 14.1 percent mainly due to the sizeable drop of 38.2 percent in the petroleum sector, despite the moderate growth of 2.3 percent witnessed in the non-oil sector. On the fiscal front, the Government of Oman introduced several positive reform measures supported by external borrowings in addition to other sources of funding to tackle the fiscal deficits. With oil prices continuing to remain low, the current account which registered a deficit in 2015 is expected to be in deficit mode in 2016 too. With inflation based on the average annual CPI remaining low at 0.74 percent during the first half of 2016, the CBO continued with its accommodative monetary policy stance and made revisions to the reserve requirement leaving more money in the hands of banks to facilitate lending requirements. Read More

Top

CBO Releases Fourth Financial Stability Report

The Central Bank of Oman has come out with its fourth edition of the Financial Stability Report (FSR) 2016 on Sunday, July 10, 2016. The Report has indicated that despite the sharp and sustained decline in oil prices since mid-2014 the economy of Oman fared fairly well without much damage.
In the Foreword of the FSR 2016, H.E. The Executive President of the CBO said that the country had proactively kept high fiscal buffers, higher capital requirements for banks, low government debt, and flexible wage contracts, because of which it fared well without much damage.
“The sharp and sustained decline in oil prices since mid-2014 has put significant pressures on the economy of Oman. However, the economy of Oman fared fairly well without much damage. This was made possible because to weather the commodity price fluctuations, Oman had proactively kept high fiscal buffers, higher capital requirements for banks, low government debt, and flexible wage contracts,” H.E. the Executive President noted in the FSR foreword.
HE also expressed confidence that a turnaround may be achieved by fiscal consolidation combined with relaxing counter-cyclical measures adopted earlier. Full text of H.E. The Executive President’s Foreword and the FSR 2016 report can be accessed by visiting the Publications Tab on the homepage of this website.

Top

CBO Releases Annual Report 2015

The Central Bank of Oman (CBO) released its Annual Report 2015 on June 30, 2016. The Report reflects the overall assessment of Oman’s macroeconomic developments during 2015 and analyses major sectors of the economy covered under five Chapters on Output,

Employment and Prices (Chapter II); Oil and Gas (Chapter III); Public Finance (Chapter IV); Money, Banking and Financial Institutions (Chapter V); and Foreign Trade and Balance of Payments (Chapter VI). The Chapter I on Overview and Outlook provides a brief review of macroeconomic developments in the first half of 2016 to present an assessment of the expected outlook for the economy in the near-term. The Annual Report also carries the audited balance sheet of the CBO as well as important CBO regulations issued during 2015 and the first half of 2016.


After five uninterrupted years of robust growth, the Omani economy recorded a contraction in 2015, mainly on account of marked drop in oil prices in the international markets and partly due to global slowdown. Despite increased oil production, net exports suffered a setback in 2015 due to low oil prices.

Prudent fiscal consolidation measures reduced Government expenditure significantly in order to contain deterioration in the budget balances. Consequently, nominal GDP contracted by 14.1 percent in 2015 reflecting the reduction in two key constituents of aggregate demand, namely, rationalization in Government expenditure and slowdown in exports as against a robust average growth of 11.3 percent during the five year period from 2010 to 2014.


Creation of adequate employment opportunities for the Omanis has been one of the major macroeconomic objectives of the Government during the recent years. During 2015, employment of Omanis in the private sector increased by 6.1 percent.


Inflationary pressures in Oman abated significantly in 2015 mainly due to the decline in international commodity prices, reduced public spending in Oman and notable appreciation of US Dollar in real effective terms since mid-2014. Annual inflation measured by movement in the average Consumer Price Index (CPI) for the Sultanate decelerated to 0.1 percent in 2015 compared with an average of 2.5 percent during the previous five years. The recent behavior of prices in Oman owes its origin to both demand and supply side factors emanating from domestic as well as external sources. From the demand side, contraction in the nominal GDP in Oman in 2015 was mainly due to sharp fall in crude oil prices in the global markets and fiscal policies pursued by the Government.

Among the supply side factors, marked drop in world food and metal prices coupled with decline in import prices in 2015 facilitated making goods cheaper in Oman.

Top

BM 1145: CBO Issues Guidelines on Impairment of equity investments classified as Available for Sale   (29/6/2016)

The Central Bank of Oman has announced guidelines on impairment of equity investments classified as Available for Sale and accordingly have advised all the licensed banks and the FLCs operating in the Sultanate to be guided by them.

Elaborating on the subject in the BM Circular 1145, H.E. the Executive President of CBO invited the attention of the licensed banks and FLCs operating in the Sultanate to paragraph 61 of International Accounting Standard (IAS) 39 on Financial Instruments: Recognition and Measurement.
He also drew attention to the CBO Letter BSD/2OO9/BKUP/Banks & FLCs/032 dated January 12, 2009 wherein the Licensed Banks and FLCs have been advised to consider a threshold of 35 percent decline in market value for assessing impairment of equity investments held under Available for Sale (AFS).

Referring further to the above mentioned IAS 39 clause which states that "A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost is also objective evidence of impairment", the CBO Circular BM 1145 noted that in the absence of any guidance in the Standard or regulatory instructions on what constitutes "prolonged", there is a wide variance amongst Licensed Banks and FLCs with regard to the definition of "prolonged" and the Central Bank has received requests for clarification in this regard.

The CBO has examined the matter and accordingly has advised all the Licensed Banks and FLCs to be guided by the following thresholds from the financial year ending December 31, 2016 onwards:

  • A decline in the fair value below cost for 6 to12 months may be considered prolonged depending on individual circumstances.
  • A decline in the fair value below cost for more than 12 months should definitely be considered prolonged
  • A decline in the fair value below cost for less than 6 months should normally not be regarded as prolonged.
  • As regards the definition of "significant", Licensed Banks and FLCs are encouraged to exercise prudence in this regard and adhere to more conservative thresholds than the Central Bank prescribed ceiling.

Top

Statement from the Central Bank of Oman: Introduction of a new Omani Rial Denomination and Discontinuing the Distribution of new 100 Baisas and 500 Baisas Denominations during the Eid Holidays   (22/6/2016)

The Central Bank of Oman would like to announce that it has launched and begun the distribution of the new Omani Rial currency note in all banks operating in the Sultanate on the occasion of the Holy Eid al-Fitr.

Regarding the 100 and 500 Baisas (half Rial) currency notes, CBO decided to distribute the used bank notes instead of the new notes in view of abundant availability of these denomination notes in its stores. Over a period of time these notes have accumulated in large numbers with CBO stores and the Bank felt that the same could be used for circulation once more.

Having said this, the Central Bank of Oman would like to categorically deny all the rumors being circulated in social media that the decision not to launch the new currency of 100 Baisas, and half Riyal was due to the high cost of issuance. CBO reiterates that the decision not to launch new notes of these denominations during the holiday season was only due to the abundant availability of the mentioned denominations in the CBO stores and also because they are valid and fit for further circulation in the market.

Arabic Version

Top

CBO Board Holds Its Second Meeting of the Year   (21/6/2016)

The Central Bank of Oman's Board of Governors concluded its second meeting of this year on Monday, June 20th 2016. The meeting which was chaired by H.E. Dr. Ali bin Mohammed bin Moosa, Deputy Chairman of CBO's Board of Governors, reviewed various issues on its agenda, including the review of the Economic and Financial report upto 31st March 2016, as well as the activity report of CBO's Departments.

In the meeting the Board approved the proposed amendments in the Articles of association of the College of Banking and Financial studies, in addition to granting approval to the application of Al Izz Islamic Bank allowing it to transfer the shares of Tasameem Real Estates LLC (UAE) in the Bank to the United International Representation of Companies LLC (UAE). The Board also deliberated on the recommendations included in the Report of the International Monetary Fund and World Bank mission on Financial Sector Assessment program (FSAP) and directed CBO's executive management to follow up with the implementation of the said recommendations as far as possible.

The actions taken by the Central Bank of Oman and licensed banks operating in Oman with regard to the financing of Small and Medium enterprises also came up for Board scrutiny. Besides, the Board also reviewed the CBO's financial position as of April 2016 and the performance of CBO's external investments during the period under review.

The Board also discussed the financial and administrative matters of CBO and has taken necessary decisions in this regard.

Arabic Version

Top

Ramadan: All Banks to Work From 9 am Till 1 pm   (07/6/2016)

On the occasion of the Holy Month of Ramadan 1437 the official working hours for all the licensed banks in the Sultanate of Oman will be from 9.00 am till 1.00 pm. A circular from H.E. The Executive President's office addressed to all banks in the Sultanate also provided detailed timings for all the services rendered by CBO. The circular further indicated that normal working hours will resume on the first working day after Eid Al Fitr. For further details on timings for services such as RTGS, ECC, ACH transactions, Cash withdrawals and Deposits etc.,   please read the circular

Top

The Sultanate Issues a Detailed Amended Law to Combat Money Laundering and Financing of Terrorism   (05/6/2016)

The Sultanate of Oman has recently issued a new detailed and amended law to combat money laundering and financing of terrorism. In a press release, the National Committee for Combating Money Laundering and Terrorism Financing said that this development comes in support of the ongoing national efforts to enhance the Sultanate's legislation in the fight against the cross-border crimes of the era namely money laundering and financing of terrorism. It also comes to address the observations contained in Oman's Mutual Joint Evaluation Report for 2010 which was conducted by the International Financial Action Task Force (FATF) and the Middle East and North Africa Financial Action Task Force (MENAFATF)). It was also necessary to strengthen the frameworks of regional and international cooperation and as a commitment to the requirements of international standards to combat money laundering and terrorist financing. This effort is exemplified in the international recommendations revised and approved in February 2013 issued by the International Financial Action Task Force to combat money laundering and financing of terrorism, and in compliance with the requirements of the international agreements and treaties related to the fight against money laundering and financing of terrorism ratified by the Sultanate.   Read More

Arabic Version

Top

CBO-UAB Organize Workshop on Restructuring of Bank Loans   (30/05/2016)

news
news

Mr. Ali bin Hamdan Al-Raisi, Executive Vice President of the Central Bank of Oman, on Monday, May 30, 2016 inaugurated a specialized banking workshop titled: "Restructuring Bank Loans" here at the at City Seasons Hotel in Muscat.

CBO organized the two-day workshop (May 30th and May 31st 2016) on the specialized subject in collaboration with the Union of Arab Banks.

Delivering a keynote address on the occasion, the Executive Vice President of CBO, highlighted the importance of loan restructuring under present circumstances. He pointed out that addressing this issue in accordance with the new approaches allows creditor banks to minimize their risks and help them in building additional appropriations and reserves to cover existing debit accounts. This initiative will also help them in providing protection to banks gearing them up to face the worst possible scenarios in case some borrowers face such a situation when opting for long-term restructuring operations. It also allows debtors to carry on with their activities.

Mr. Ali Hamdan also pointed out that the Central Bank of Oman has recently taken a host of precautionary and supervisory measures and procedures in relation to loan restructuring.

During the course of the workshop speakers from the Central Bank of Oman, the Central Bank of Lebanon (Banque Du Liban) and the International Finance Corporation member of the World Bank Group will discuss on this subject and share their experiences in restructuring bank loans. Participants in the workshop include about 60 high and middle-ranking employees from 16 local banks and finance companies and from the Arab Republic of Egypt.

Arabic Version

Top

news
news
news

Top

news
news

Top

CBO's 49th GDB Issue Oversubscribed   (19/04/2016)

The Central Bank of Oman's 49th issue of government development bonds worth RO 100 million received substantial response from investors. Applications to the 49th GDB received were in excess of over OMR 72.83 million at OMR 172.83 million, as against the Issue value of OMR 100 million.

The amount received in excess of the stipulated issue was paid back to the concerned parties and only a total of OMR 100 million were allotted in government bonds.

The average yield equivalent percent to the accepted price in the 49th Issue was 5.25 percent at a price of OMR 98.550. While the highest yield equivalent was at 5.54 percent for OMR 96.900, the lowest was at 4.98 percent at an accepted price of OMR 100.115.

CBO's Monetary Operations Department (MOD) released the online auction results at its premises in the presence of senior MOD officials. The 7-year Bond will be issued on 25th April 2016, while it will mature on 25th April 2023 carrying a coupon rate of 5.0 % p.a.

Top

CBO Raises Maximum Limit of Investments by Licensed Banks in GDB and Sukuk   (12/04/2016)

The Central Bank of Oman has raised the maximum investment limit in Government Development Bonds and Sukuk by licensed banks from 30% to 45% of a Bank's networth effective from 1st April 2016.

Drawing attention of licensed Banks to the provisions of Article 65(d) of the Banking Law No. 114/2000, and Circular BM 938 dated 13th May 2002, in the BM Circular 1144 issued here on Tuesday, 12th April 2016, the Central Bank announced its decision to raise the investment limits.

"In order to provide Licensed Banks with enhanced opportunities for investing surplus money beyond the stipulated lending ratio limitation, the Board of Governors has decided to raise the maximum permissible limit on investment in Government Development Bonds and Sukuk from 30% to 45% of a Bank's net worth effective from 1St April 2016," H.E. The Executive President of CBO noted in the Circular.

Licensed banks are further advised that the net worth position during any year used in the calculation of these limits will, henceforth, be based on their Audited Balance Sheet as of December 31st, of the previous year.

Top

High Sharia Supervisory Authority Meeting Held   (04/04/2016)

news

The High Sharia Supervisory Authority at the Central Bank of Oman held its first meeting of this year here at its premises on Monday 4th April 2016. The meeting was Chaired by Sheikh Dr. Kahlan Bin Nabhan Al Kharoosi and attended by all the members.

The Authority held detailed deliberations on the issues presented to it, covering various Sharia aspects relating to Islamic banking business in Oman and provided its opinions in the light of the discussions.

Top

CBO Issues Revised Guidelines for Reserve Against Deposits   (30/03/2016)

The Central Bank of Oman has decided to allow treating investments in unencumbered Treasury Bills, Government Development Bonds and Oman Government Sukuk as part of eligible reserves up to a maximum of 2% of deposits.

In a BM 1143 circular addressed to all licensed banks in the Sultanate issued here last week, H.E. The Executive President of CBO, directed the attention of banks to Circular BM 1050 dated of 23rd December 2008, and said that in modification thereof and with a view to provide greater flexibility for banks in liquidity management, credit deployment and investments, Central Bank of Oman has decided to allow treating investments in the above listed instruments as part of eligible reserves up to maximum of 2% of deposits. However, the reserve requirement remains unchanged at 5 percent, the Circular said.

The above modification will be effective from the computation period commencing with 1st April 2016 and all other extant instructions remained in force. The circular further advised that local inter-bank deposits alone shall be excluded and reserve shall be maintained on all other deposit- liabilities, both in Omani Rial and foreign currencies - including Certificates of Deposits and commercial prepayments (margins).

Reserve requirement returns are to be submitted on or before the fifth business day following the end of the computation period and deficiencies will attract penalties in terms of instructions issued under Article 14g of Banking Law, the circular advised.

The circular further advised that all licensed banks should comply accordingly and submit their reserve requirement returns as per the prescribed format. For full details and attachments please click here .

Top

Lord Mayor of London Visits CBO   (29/03/2016)

lord mayer

His Excellency Hamood bin Sangour Al-Zadjali, the Executive President of the Central Bank of Oman, welcomed Lord Jeffrey Mountevans, the Lord Mayor of London, and the accompanying delegation at CBO Head Office on Tuesday, March 29th 2016.

Mr. Jonathon Paul Wilks, UK Ambassador to the Sultanate of Oman and members from the UK Embassy were also part of the delegation.

The visiting delegation discussed bilateral relations between the Sultanate and the UK in the different banking and financial disciplines, focusing alongside on the need to enhance relations between Omani and British banking institutions.

The delegation also discussed ways to make use of the studies and programs conducted by the Bank of England in the banking sector.

During the interaction, His Excellency the Executive President of CBO provided a brief background of Sultanate's monetary and banking policy and the prominent supervisory systems and measures applied in the banking sector to the visitors.

He also highlighted the achievements that took place in the banking discipline in Oman since the inauguration of the first British bank in Muscat in 1948 called HSBC Bank Middle East, which several years ago became HSBC Oman because of the 49% Omani ownership.

Elaborating further His Excellency explained that the Omani banking sector currently has 7 local banks and 9 branches of foreign banks in addition to 2 specialized banks and 2 fully-fledged Islamic banks.

He noted that the banking sector has witnessed several mergers between banking institutions during the past 4 decades thanks to the incentives offered by CBO.

In order to create major banking entities in the country, His Excellency also affirmed that the door for further mergers and acquisitions was still wide open in the Sultanate.

He informed the delegation that Omani banks were well placed with comfortable capital buffers and that they have been offering financial facilities to all sectors and establishments, especially SMEs, in line with the instructions issued by CBO in this regard.

Furthermore, His Excellency also discussed the issue of training, qualification and educational programs provided by British banks, particularly those offered by the Bank of England, and deliberated on how these can be utilized in training Omani bankers.

The esteemed guest commended the achievements of the Omani banking sector and emphasized the need to enhance cooperation among Omani and British banking institutions in all disciplines. He said that this initiative will effectively contribute in strengthening relations and also in help in economic, financial, touristic and educational collaboration between the two countries.

Lord Jeffrey Mountevans and the accompanying delegation later toured the Currency Museum, where the delegation was given a briefing about the historical origin of the currencies in Oman and their circulation during different periods of time. The delegation also learnt about the different currencies issued by CBO during the prosperous era of His Majesty Sultan Qaboos bin Said.

The esteemed guest chose to record his comments in the visitors' log of the museum, lauding the informative and historic tour of the museum, its different types of possessions, which he said depicted the diverse facets of the Omani culture and its monetary history.

CBO Holds its First Board Meeting of the Year  

(27/03/2016)

The Central Bank of Oman's Board of Governors which met here for the first time this year on Sunday 27th March 2016, took important decisions pertaining to the banking sector.

The meeting which was chaired by H.E. Dr. Ali bin Mohammed bin Moosa, Deputy Chairman of CBO's Board of Governors, reviewed various issues on its agenda including the review of the Economic and Financial report upto 31st December 2016.

In the meeting, the Board approved the application of Bank Muscat allowing it to open a Representative Office in Tehran (Iran). In view of the saturation in the domestic market, the Board decided to continue with moratorium on licensing new money Exchange Companies for another two years until end of 2017.

The Board also approved the application of Wasel Exchange to acquire the operations of Musandam Exchange. It also agreed to permit Finance and Leasing Companies to accept deposits from corporates only, based on certain conditions.

In addition to reviewing the actions taken by the Central Bank of Oman and licensed banks operating in Oman with regard to the financing of Small and Medium enterprises, the Board endorsed the audited accounts of Central Bank of Oman, Deposit Insurance Fund and pension scheme of Central Bank of Oman as at 31st December 2015.

Additionally, the Board also reviewed the Management letter report of the external auditors and annual report of the CBO Internal Audit Committee.

CBO's financial position as at the end of February 2016 and the performance of CBO's external investments during the period under review also came up for Board scrutiny during its meeting.

Besides reviewing the activity report of CBO's Departments during the period under review, the Board also examined the financial and administrative matters of CBO and has taken necessary decisions in this regard.

 
Arabic Version

Top

CBO to Host Workshop on "Facilitating the implementation of the IFSB Standards"   (27/03/2016)

Central Bank of Oman (CBO) will be hosting a four-day workshop on "Facilitating the implementation of the IFSB standards", in co-ordination with Islamic Financial Services Board. The event which is being held under the patronage of H.E. Hamood Sangour Al Zadjali, The Executive President of the Central Bank of Oman, here at Crowne Plaza Hotel, Muscat, will begin on Monday, 28th March 2016 and end on Thursday 31st March, 2016.

The workshop is being organized as part of capacity building initiatives to improve the skill sets and capabilities of the staff of Islamic banks and windows operating in the Sultanate of Oman and also those of the supervisory departments of the CBO.

During its four-day deliberations, the workshop is expected to deliberate on 'Revised Capital Adequacy Standard' and 'Revised Guidance on Key Elements in the Supervisory Process of the Institutions Offering Islamic financial Services'. The workshop will also assist the participants in the implementation of these two standards by offering them hands-on training and providing them with practical case studies.

44 participants from different Islamic banks and windows and the supervisory Departments of the CBO will participate in this workshop.

The Islamic Financial Services Board is an international standard-setting body of regulatory and supervisory agencies that promotes and enhances the soundness and stability of the Islamic financial services industry by issuing global prudential standards and guiding principles for Islamic banking, Islamic capital markets and Takaful sectors. The IFSB also coordinates initiatives on industry related issues, as well as organizes roundtables, seminars and conferences and awareness programs for regulators and industry stakeholders in various countries.

Central Bank of Oman is an observer member of IFSB since February 2012 and participates actively in all the events organized by the IFSB. During the preparation of Islamic Banking Regulatory Framework (IBRF), Central Bank of Oman took guidance from the standards issued by the IFSB.

 
Arabic Version

Top

CBO Announces 49th GDB Issue Worth RO 100 Million   (21/03/2016)

The Central Bank of Oman has announced the 49th Government Development Bonds (GDB) issue worth OMR 100 million with a maturity period of seven years. The current issue will carry a coupon rate of 5.0 per cent per annum.

According to a media release from CBO's Monetary Operations Department (MOD) the issue will be open for subscription between 03rd April and 14th April 2016, while the auction will be held on Tuesday, 19th April 2016. The issue settlement date will be Monday 25th April, 2016.

Likewise, interest on the new bonds will be paid semiannually on 25th October and 25th April, every year until maturity date on 25th April 2023.

It may be noted that subscription is open to all investors, residents and non-residents, irrespective of their nationality.

The investors are required to apply for these bonds only through the competitive bidding process and they should submit their bids through the licensed banks operating in the Sultanate.

However, investors with applications of OMR1 million and above can directly submit their bids to CBO after getting them endorsed from their respective banks, the CBO statement advised.

The release further informed that the bonds which are direct and unconditional obligations of the Government of Oman can be used as a collateral security to obtain loans from any local licensed bank. They can also be traded at prevailing market rates through the Muscat Securities Market (MSM).

The details of the bonds allotted will be recorded in the register maintained by the Muscat Clearing & Depositary Company. Prospectus and application forms can be obtained from any licensed bank operating in the Sultanate.

 

Top

CBO Advises Public to Refrain from Defiling National Currency   (13/03/2016)

The Central Bank of Oman has called upon the residents of the country to abstain from defiling the national currency notes and coins, and has requested the Public to respect and protect the same, as it represents and contains the national symbols.

In a Public Notice issued on Saturday, March 12th 2016, CBO which drew attention of the public to this issue noted that national banknotes were being mutilated and the currency coins were being misused by the public. "This mutilation takes place by affixing seals on the banknotes or writing on them or otherwise misusing them one way or another, resulting in changing their look, features or damaging them," the CBO notice remarked.

The CBO notice further cautioned that some outlets and shops were selling garlands, wreaths, and arches made of the national currencies which contravened the provisions of Oman Banking Law No. 114/2000, it said.

Evidently, any use of the national banknotes and the currency coins for other than circulation as public tender falls under penalty of law, the notice informed.

It violates Article 43 (b) of Oman Banking Law, which stipulates that: "Any violation of this Article shall be an offense against public confidence as provided in Chapter One, Title Three, Book Two of Oman Penal Code or any other law replacing it."

 
Arabic Version

Top

CBO Releases Mid-Year Review of Oman Economy   (01/03/2016)

news

The CBO has released the Mid-Year Review of the Omani Economy for 2015 covering recent macroeconomic developments in the Sultanate. The review indicated that reflecting the persistently low crude oil prices in the global markets and sluggish global growth, the Sultanate exhibited slowdown in economic activities in the first three quarters (January-September) of 2015.    Read More

48th GDB Issue Results Declared   (17/01/2016)

The Central Bank of Oman has declared the results of the 48th issue of Government Development Bonds worth RO 100 million on Wednesday, February 17th 2016. The issue received an overwhelming response from the subscribers in line with the previous GDB issue results.

The average yield equivalent percent to the accepted price was 4.32 percent at price of RO 96.345, while the highest yield equivalent was at 5percent for RO 93.430 and the lowest was at 2.90 percent for RO 102.775.

CBO's Monetary Operations Department (MOD) released the online auction results at its premises in the presence of senior MOD officials.

The 5-year Bond will be issued on 22nd February 2016, while it will mature on 22nd February 2021 carrying a coupon rate of 3.50 % p.a.

The issue was open for subscription between 07th February and 14th February, 2016, while the auction was held on Tuesday, February 16th, 2016.

Top

CBO Announces 48th GDB Issue Worth RO 100 Million   (02/02/2016)


news
news

The Central Bank of Oman has announced a new Government Development Bonds issue worth OMR 100 million with a maturity period of five years. The current issue will carry a coupon rate of 3.5 per cent per annum.

According to a media release from CBO the issue will be open for subscription between 07th February and 14th February, 2016 while the auction will be held on Tuesday, 16th February 2016. The issue settlement date will be Monday 22nd February, 2016.

Interest on the new bonds will be paid semiannually on 22nd August and 22nd February, every year until maturity date on 22nd February 2021.

The 48th GDB issue is open to all investors, residents and non-residents (irrespective of their nationality).

The investors are required to apply for these bonds only through the competitive bidding process and they should submit their bids through the licensed banks operating in the Sultanate.

However, investors with applications of OMR1 million and above can directly submit their bids to CBO after getting them endorsed from their respective banks, the CBO statement advised.

The release further informed that the bonds which are direct and unconditional obligations of the Government of Oman can be used as a collateral security to obtain loans from any local licensed bank. They can also be traded at prevailing market rates through the Muscat Securities Market (MSM).

The details of the bonds allotted will be recorded in the register maintained by the Muscat Clearing & Depositary Company. Prospectus and application forms can also be obtained from any licensed bank operating in the Sultanate.


Top

CBO Issues Advisory on SMEs Definition   (12/01/2016)

The Central Bank of Oman has asked all the banks operating in the Sultanate to be guided by the criteria regarding the definition of SME, as provided by the Public Authority for Small and Medium Enterprises Development vide its Decision 1/2016 dated 4th January 2016.

Referring to the criteria from the Public Authority on the SMEs, the CBO in its BM 1141 circular noted that the new criteria defines Micro Enterprises, as those units which have an employee strength of one to five (1 to 5) and an annual turnover of less than RO 100,000.

The criteria for Small Enterprises will be the employee strength of 6 to 25 employees with an annual turnover between RO 100,000 and less than RO 500,000.

Similarly of the Medium Enterprises, the criteria will be 25 to 99 employees with an annual turnover between RO 500,000 and less than 3 million.

If an enterprise does not meet one of the criteria, it will fall into the higher category or go out of the SME segment, as the case may be, the BM Circular said.

CBO further advised that all licensed banks shall be guided accordingly, availing the revision and enhancing their financial and non-financial assistance to the SME segment noting that 5% fund-based credit target remains in force and further decision, on review, will be conveyed separately.

Top