Central Bank of Oman survey shows stronger demand for loans in 2023

Central Bank of Oman survey shows stronger demand for loans in 2023

Muscat – Oman’s banking sector is expected to witness improved credit conditions and stronger lending growth in 2023, a survey conducted by the Central Bank of Oman (CBO) has revealed.

The results of the Credit Conditions Survey have been published in the CBO’s recently released Financial Stability Report 2023.

The survey revealed a moderate increase in demand for household lending in 2022. Moreover, banks witnessed strong demand for loans from both the corporate and SME sectors. Looking forward, survey respondents expect higher credit approval rates and stronger lending growth in 2023.

Survey respondents expect SME lending growth to be at 9.6% in 2023 despite stringent lending standards, followed by corporate lending growth at 8.5%. Lending to state-owned enterprises and the household sector is expected to grow by 5.5% each this year.

The Credit Conditions Survey, carried out in December 2022, was addressed to senior credit officers of all banks and finance and leasing companies (FLCs) operating in Oman to assess loan demand, credit availability, changes in lending standards in 2022, and expectations for the year 2023. The survey covers lending to households, corporates, SMEs, and general questions on factors driving changes in credit demand or supply.

Household lending

According to the responses to the Credit Conditions