To: All Licensed Commercial Banks

After Compliments,

Sub: Master Circular on Net Worth

1. The Central Bank of Oman has mandated various prudential limits on risk exposures with reference to the net worth of banks. Article 5 of Oman Sultani Decree No. 114/2000, the Banking Law 2000 has defined the net worth of a licensed bank as the aggregate amount, as determined in accordance with regulations of the Central Bank, of the assets less liabilities, other than capital and surplus, of a licensed bank and shall include the aggregate of assets and liabilities both within and outside the Sultanate, except as otherwise specifically provided by the Law. Regulation BM/REG/013/7/78 defined various components and the manner of deriving the net worth of local and foreign banks.