Oman’s non-banking finance companies (NBFCs) continue to adopt a conservative approach to lending due to tightened liquidity and higher funding costs, with focus shifting to collections and recoveries. “Focus is being given to recoveries and collection to ease the pressure on cash flows through increased collection in view of the liquidity pressures prevailing in the market,” Taageer Finance said in directors' report. “Given the challenging market conditions,” Aftab Patel, CEO of Al Omaniya Financial Services, said, “we are cautiously optimistic, but at the same time adopting a conservative approach. Our focus is on maintaining the quality of business.”   The Central Bank of Oman (CBO) in its recent Financial Stability Report said heavy reliance on bank borrowing exposes NBFCs to the cost and availability of bank funding. Moreover, the central bank said because of the interconnectedness with banks, shocks from banks may be quickly transmitted to NBFCs. As of end December 2015, bank borrowing constituted about 62% of the balance-sheet size of NBFCs, according to CBO statistics. (Muscat Daily)