Oman capital hike move to strengthen banks, says CBO

MUSCAT— Last week's decision to hike the capital of Omani banks from RO20 million to RO50 million is meant to strengthen their financial status, Central Bank of Oman (CBO) Executive President Hamoud bin Sangour Al Zedjali has said.

By From Ourcorrespondent

  • Follow us on
  • google-news
  • whatsapp
  • telegram

Published: Sun 8 Jan 2006, 9:08 AM

Last updated: Sat 4 Apr 2015, 2:45 PM

He added that it was also meant to enhance their competitiveness visa-a-vie foreign banks, both locally and abroad, and prepare them to apply the new capital adequacy criteria (Basel Pact II), which required banks to increase their capital by the end of this year.

Zedjali said the new regulation would also help banks in their plans to expand in the Gulf and regional markets.

He noted that out of the five local banks, three had already increased their capital to more than RO50 million and the rest would "easily do so, thanks to the good results achieved by banks and the expansion of the economic and banking activity in the country."

CBO last week also fixed capital of branches of foreign banks operating in Oman at a minimum of RO10 million which, Zedjali said, was aimed at encouraging them "to contribute to financing the private sector's economic activity in the Sultanate."

More news from