Oman: Central bank says financial stability remains strong
Source: Middle East Insurance Review | Oct 2024
The Central Bank of Oman (CBO) reports low short-term risks to financial stability in its 2024 Financial Stability Report (FSR). CBO executive president Tahir Al Amri noted that, despite global challenges, Oman’s financial system has remained stable. A January 2024 systemic risk survey showed increased confidence in the system, though there is a slightly higher perceived risk of a negative event. Specialised and foreign banks were seen as the strongest, while insurance companies and capital market institutions were viewed as more vulnerable. Concerns included global trade issues, geopolitical risks and cyber attacks.
Outlining rising threats that Oman is facing, the FSR said, “With the rapid digitisation of financial systems, cyber security concerns present novel challenges to financial stability. The rise in cyber attacks, particularly targeting financial institutions worldwide can have systemic consequences if they erode the confidence of the users in the digital delivery channels. The CBO remains vigilant of the cyber risks, crafting policies to mitigate these risks and safeguard market integrity.
“Climate change presents another formidable threat, with its far-reaching impacts increasingly felt across the globe. The urgency of transitioning to a zero-emission economy is paramount, as physical shocks and the transition’s risks loom large. The CBO plays a proactive role, advising financial institutions to strengthen their risk management frameworks by incorporating climate risks and embracing green financing initiatives.” M