To: All Licensed Banks Operating in the Sultanate of Oman

Subject: "Towards a Framework for Financial Stability” A presentation from the International Monetary Fund

After Compliments,

The Central Bank wishes to furnish herewith a paper prepared by the International Monetary Fund entitled “Towards a framework for Financial Stability” for information and retention by the licensed banks in the Sultanate.

We believe that you are already familiar with the subject matter discussed in this paper since it dwells broadly on the same ingredients required for a sound financial system in a country and embodied in the Consultative Paper issued by the Basle Committee on Banking Supervision titled “Core Principles for Effective Banking Supervision” forwarded to banks with our letter No. BSD/97/BKUP-317/GEN/443 dated 26.04.1997. The Central Bank therefore wishes to advise the banks to study the contents of this paper also carefully and co-operate with the Central Bank to ensure a healthy banking system in Oman by pursuing the systems and procedures recommended therein.