MUSCAT — In implementation of the directives of His Majesty Sultan Qaboos, the Central Bank of Oman (CBO) Board of Governors yesterday approved the establishment of Islamic banks in the Sultanate to operate on the basics of the Islamic Sharia. The Board also agreed to allow the banks operating in the Sultanate to open branches through which they can practise Islamic banking activities.
This was decided at the second meeting of the Board held under the chairmanship of Dr Ali bin Mohammed bin Moosa, Deputy Chairman of the CBO Board of Governors. In this connection, the Board approved the application by Shaikh Saud bin Ali al Khalili to establish a new Islamic bank under the name ‘Nizwa Bank’ to provide services as per the Islamic Sharia.
The Board also reviewed the performance of the local banks and their affiliated establishment abroad. It also reviewed the annual report for the BDIS for 2010. It also discussed the recommendations cited in the report prepared by the IMF and the World Bank on the programme on evaluating the financial sector in the Sultanate. It directed the executive management of the bank to follow the implementation of all the recommendations cited in the report as per the available resources.
The Board also approved the licensing policy for the foreign exchange companies and the minimum capital requirements for these companies, which was raised to RO 1 million for the new companies alongside with RO 100,000 deposit. The Board decided to raise the capital of the new financing and lease companies to RO 25 million.
The Board also approved the by-law for the Banking Credit Statistical Data Unit.
It reviewed the financial and administrative matters of CBO and took necessary decisions.
The meeting discussed a number of topics listed on the agenda and reviewed the economic and financial report of the central bank as of the end of March 2011, as well as the report of the CBO’s departments for the past period. — ONA
