Oman Central Bank Circular No. BM849/1998

Oman Regulation No. BM44/7/1998 Regarding Lending Ratio

To: All Licensed Banksn operating in the Sultanate of Oman

Subject: Oman Regulation No. BM44/7/1998 Regarding Lending Ratio

Attached pleased ﬁnd a copy of the Oman Regulation No. BM/44/7/1998 published in the Ofﬁcial Gazette No. 629 dated 15 August, 1998.

All Banks are required to adhere to the provisions of the said Regulation.

Oman Regulation No. BM/44/7/1998 - Regarding Lending Ratio

In compliance with Article 4-4.06*^[1] of Oman Law No. 7/1974, the Banking Law and pursuant to Oman Decision No. 1180/102/6/1998/12 issued at its meeting dated June 21, 1998, the Board of Governors decided the following:

Article 1

No licensed bank shall lend, whether by loans, discounts, advances and/or overdrafts, whether secured or unsecured when such lending in aggregate exceeds 85% of its deposits as provided for in Article 2.

Article 2

Deposits shall be determined as the sum of the following liabilities whether in Rial Omani or other currencies:

Demand deposits, including currency, checking and/or call deposits.
Saving deposits
Time deposits
Margin accounts
Net amounts due to Head Ofﬁce/or own branches abroad