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27-Mar-2018

Central Bank of Oman eases lending ratio by allowing the inclusion of interbank loans and borrowings

Central Bank of Oman (CBO) said on Monday that from 1 April 2018, Omani banks would be allowed to factor in their local interbank money market positions when calculating lending ratios, a step that could enable some of them to boost lending to companies. The new policy, introduced at the request of some lenders, will let banks use liquidity more efficiently and stimulate activity in the interbank money market, the central bank said in a statement. Omani banks must comply with a regulatory lending ratio of 87.5% of their deposit basis. From April, they will add interbank loans and borrowings when calculating regulatory lending ratios. This will create more room to lend by borrowing money from banks

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