Oman Banks Urged to Offer Only Cash Prizes

MUSCAT - Commercial banks in Oman will no more be allowed to offer prizes in kind in promotion schemes aimed at wooing depositors.

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Published: Thu 26 Mar 2009, 12:07 AM

Last updated: Thu 2 Apr 2015, 7:45 AM

The Central Bank of Oman in a statement after a meeting of its board of governors here on Sunday, said banks must only offer cash prizes.

Currently, banks in Oman, engaged in a stiff competition to lure customers, offer a host of rewards, including cars, villas and flats. Central Bank also advised banks to concentrate on providing better services and products in a “more professional way.”

The meeting, chaired by Dr. Ali bin Mohammed bin Moosa, Minister of Health and Deputy Chairman of the board, decided to maintain the interest rate ceiling on personal loans provided by banks operating in Oman at eight per cent.

It reviewed lending ratios and the methodology used to calculate them in comparison to those employed in other countries in general and the GCC countries in particular.

The board decided that the methodology used by Central Bank —is in use and tested for many years— was the right one and more appropriate given the economic and financial conditions in Oman.

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