Oman Poised to Tighten Loan Rules Again
Barely five months after easing the regulations for personal bank loans, the Central Bank of Oman seems poised to tighten them again, the Gulf News reported Sunday.
The Central Bank, according to the paper, has asked the commercial banks to provide details of personal loans that have turned bad. This is the first time the bank has asked for separate figures on non-performing personal loans, said the paper.
Five months ago the CBO raised the ceiling for personal loans from 30 percent to 35 percent. Provisions against commercial bank loan losses rose substantially last year, and this was considered a main reason for the decline in bank earnings. Provisions for loan losses rose over 20 percent from 130 million riyals to 158 million last year as earnings fell by more than five percent, it added – Albawaba.com