Oman banks hold 18.8% capital ratio, central bank stability report says
Oman's banking sector kept capital adequacy at 18.8% and liquidity coverage at 195%, the central bank reported.
· Last verified: 7 Nov 2026 (Oman News Agency (ONA) / Central Bank of Oman)
Summary
- Oman's banking sector kept capital adequacy at 18.8% and liquidity coverage at 195%, the central bank reported.
- Non-performing loans stood near 4.4%, with return on assets at 1.5% and return on equity at 10.1%.
- Strong buffers keep credit conditions favorable for companies and individuals borrowing in Oman.
The latest
Oman's banking sector maintained a capital adequacy ratio of 18.8% and a liquidity coverage ratio of 195%, according to the Central Bank of Oman's 2026 Financial Stability Report. The report said the financial system continued to demonstrate resilience against shocks despite rising global uncertainty. Non-performing loans came in at roughly 4.4% of lending, while profitability indicators held positive.
Details
- The core figures: According to the report, banks recorded return on assets of 1.5% and return on equity of 10.1%, alongside the 18.8% capital adequacy ratio and 195% liquidity coverage. The central bank described asset quality as high and said capital, profitability and liquidity levels all supported continued strong sector performance.
- Stress tests: The central bank said stress-test results confirmed the banking sector's ability to absorb adverse shocks while keeping both capital and liquidity above regulatory requirements. The report did not publish the specific scenarios used or the post-shock ratios each test produced.
- Macro backdrop: The report attributed continued improvement in Oman's macroeconomic and financial environment to prudent fiscal policy, a stronger external position and improved fiscal sustainability. It said these developments contributed to upgrades in Oman's sovereign credit ratings by international rating agencies, without naming the agencies or the new grades.
- Composite index: The central bank's composite financial stability index continued to register positive levels, which the report linked to better macroeconomic conditions, strong banking performance and lower systemic risk. The report did not disclose the index value or its components.
- Market survey: A systemic risk survey cited in the report found market participants still confident in the stability and resilience of Oman's financial system, even as their perception of global and domestic risks increased. The number of respondents and the survey period were not specified.
- Islamic banking: Islamic banking assets grew 9.9% and now account for 19.6% of total banking sector assets, according to the report. The central bank did not publish an absolute value for those assets or a comparison with the previous year's share.
- Credit conditions: The report said credit conditions remained at levels favorable to supporting economic activity, and projected that demand for corporate and retail credit will stay strong while banks continue applying prudent lending standards.
- Non-bank finance: Assets of non-bank financial institutions rose 9.0%, the report said, but the sector remains relatively small, so the systemic risk it poses to the wider financial system stayed limited.
- Cyber resilience: With financial services digitizing rapidly, the central bank said strengthening cyber resilience is now a core supervisory priority, and that it continues to develop its regulatory frameworks and the sector's readiness to face cyber threats.
- Risk outlook: The report flagged geopolitical developments, uncertainty tied to global trade policy, cyber threats and rising external risks in the period ahead, saying they require a continued proactive approach to preserving financial stability.
Between the lines
The central bank is pairing strong headline numbers with a defensive policy message. Capital at 18.8% and liquidity at 195% sit well above requirements, yet the report's emphasis on trade-policy uncertainty, cyber threats and external risks signals that the buffers are being framed as insurance rather than headroom for looser supervision.
What's next
The central bank said it will keep applying proactive macroprudential policies, strengthen its risk-monitoring system and develop a forward-looking regulatory framework. The next concrete signals are updated credit-demand readings and any further sovereign rating action.