The Central Bank of Oman has unveiled a set of regulatory initiatives aimed at supporting Oman’s economic diversification agenda and strengthening financial stability, combining sector-specific lending priorities, capital relief programmes, and updates to banks’ liquidity and interest rate risk management frameworks. The measures are intended to steer bank credit toward priority non-oil sectors including tourism, renewable energy, logistics, mining, agriculture, fisheries, education, healthcare, and technology. The package is positioned as enabling banks to build stronger capital buffers while managing risk, with the Central Bank of Oman indicating it could support more than USD 25 billion in financing over the next five years. Enhancements also include new liquidity management tools and strengthened interest rate risk management practices, designed to improve banks’ responsiveness to market conditions and their funding and pricing decisions.
Central Bank of Oman 2025-02-06
Central Bank of Oman rolls out sector-targeted lending and capital relief programmes and modernises liquidity and interest rate risk frameworks
The Central Bank of Oman announced regulatory initiatives to support economic diversification and financial stability, focusing on non-oil sectors like tourism, renewable energy, and technology. Measures include sector-specific lending priorities, capital relief programs, and updates to liquidity and interest rate risk management frameworks. These initiatives aim to enable banks to build stronger capital buffers and could support over USD 25 billion in financing over the next five years.