To: All Licensed Banks

Operating in the Sultanate of Oman

After Compliments,

Sub: Reserve against Deposits

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1. Attention of licensed banks is invited to Circular BM 1050 dated of

23rd December 2008.

2. Inmodification thereof and with a view to provide greater flexibility for banks in liquidity management, credit deployment and investments, Central Bank of Oman has decided to allow treating investments in unencumbered Treasury Bills, Government Development Bonds and Oman Government Sukuk as part of eligible reserves up to maximum of 2% of deposits.

Reserve Requirement remains unchanged at 5%.

3. The above will be effective from the computation period commencing with 1st April 2016.

4. All other extant instructions remain in force. Local inter-bank deposits alone shall be excluded and reserve shall be maintained on all other deposit- liabilities, both in Omani Rial and foreign currencies - including Certificates of Deposits and commercial prepayments (margins). Reserve requirement returns are to be submitted on or before the fifth business day following the end of the computation period and deficiencies will attract penalties in terms of instructions issued under Article 14g of Banking Law.