To: All Licensed Banks Operating in the Sultanate of Oman

After Compliments,

Sub: Prompt Corrective Action (PCA) Framework

1. The existence of weak banks pose a continuing challenge for the supervisors and any delays in dealing with such banks has serious supervisory implications, besides potential disruptions to the financial markets. Accordingly, supervisors across various jurisdictions have robust methods – preventive measures, early identification, corrective action, resolution and exit strategies to ensure stability of the financial system. The corrective actions, one of the important methods, are designed to deal with the deficiencies and to bring about changes in the behaviour of banks.