Muscat:

The total outstanding credit extended by other depository corporations stood at OMR25.8
billion at the end of November 2019, a rise of 3.0 per cent over the level witnessed a year ago,
according to the report issued by the Central Bank of Oman (CBO).
Credit to the private sector increased by 2.6 per cent to OMR22.8 billion at the end of November
2019.
Of the total credit to the private sector, the non-financial corporate sector stood at 46.1 per cent
followed by the household sector (mainly under personal loans) at 45.2 per cent, financial
corporations at 5.4 per cent and other sectors the remaining 3.4 per cent.
Total deposits registered a growth of 1.7 per cent to OMR23.2 billion at the end of November 2019.
Private sector deposits of the banking system registered a growth of 2.3 per cent to OMR14.8
billion at the end of November 2019.
Sector-wise, the share of households was 50.5 per cent of the total private sector deposit base,
followed by non-financial corporations at 29.5 per cent, financial corporations at 17.7 per cent and
the other sectors at 2.3 per cent.
ONA (2020), Total deposits in Oman reach OMR23.2 billion, Available at:
https://timesofoman.com/article/2667205/business/total-deposits-in-oman-reach-omr232-billion,
(Accessed: 02 August, 2020)
Read the above report and write an assignment based on the following tasks:
(A) Briefly introduce characteristics of financial corporations and non-financial corporations.
(10 marks)
(B) Discuss risk management in financial market and financial institutions with three types of
risks faced by financial market and three types of risks faced by financial institutions in
Oman. (30 marks)
(C) According to above report, the total deposits registered a growth of 1.7 per cent to
OMR23.2 billion at the end of November 2019. Private sector deposits of the banking
system registered a growth of 2.3 per cent to OMR14.8 billion at the end of November 2019.
If the CBO has set the cash reserve ratio for 10% of total deposit, how much credits (loans)
can be given to the borrowers?
You are required to:
a) Discuss credit risks in private sectors of the banking system. (5 marks)
b) Calculate total balance can be given in the form of credits or loans. (10 marks)