Published: May 10, 2012
Agency points to oil price and government spending as buoying lending growth.
Rating agency Moody’s has maintained its outlook for Oman’s banking system as stable.
The agency notes that Oman offers a benign operating environment underpinned by high oil prices and rising government spending – this should buoy lending growth and profitability, its analysts add, while supporting banks’ funding bases.
There are, however, structural weaknesses that Moody’s highlights, namely those related to banks’ high dependence on the small, undiversified Omani economy, and high borrower concentrations that expose banks to event risk.