The provisional net profits of commercial banks stood higher at RO 100.8 million at the end of April — MUSCAT — The monthly bulletin released by the Central Bank of Oman (CBO) pointed out that on the liabilities side of the balance sheet, total deposits (rials plus foreign currency deposits) witnessed a year-on-year growth of 24.4 per cent to RO 13,259.7 million in April from RO 10,657.6 million in April 2011.
Government deposits with the commercial banks increased by 45.5 per cent to RO 3,690.9 million, while deposits of public enterprises increased by 7.9 per cent to RO 833.5 million during the same period. Private sector deposits with commercial banks increased by 17.9 per cent to RO 8,526.9 million in April from RO 7,234.7 million last year.
The provisional net profits of commercial banks stood higher at RO 100.8 million at the end of April compared to RO 91.1 million at the end of April 2011. Broad money (M2) increased by 17.1 per cent to RO 10,263.4 million in April compared to RO 8,767.7 million in April 2011. Narrow money (M1), comprising currency held by the public and local currency demand deposits, expanded by 10.5 per cent to RO 3,465.8 million by April 2012 on a year-on-year basis.
Quasi money (comprising rial savings and time deposits, certificates of deposit issued by commercial banks, margin deposits and foreign currency denominated deposits) increased by 20.7 per cent to RO 6,797.6 million in April 2012 compared to RO 5,630.4 million in the previous year.
As regards the sources of broad money supply (M2), net foreign assets of the banking system (including CBO) increased by 25.7 per cent to RO 6,058.5 million in April 2012 from RO 4,820.9 million in April 2011, while domestic assets increased by 6.5 per cent to RO 4,204.9 million from RO 3,946.8 million during the same period. CBO’s policy rate for injection of liquidity, i.e. repo rate, which remained unchanged at 2 per cent until February 2012, was reduced to one per cent in March 2012 consistent with the LIBOR rate.
CBO’s policy interest rate for absorption of surplus liquidity in the form of CBO CDs of 28 days maturity increased from 0.06 per cent in April 2011 to 0.085 per cent in April 2012. The overnight rial domestic inter-bank lending rate increased to 0.120 per cent in April from 0.096 per cent in April 2011. The interest rate spread between rial lending and rial deposit rates decreased to 4.715 in April 2012. — ONA
