Interview with Adnan Haider Darwish, CEO of Oman Housing Bank

Interview with Adnan Haider Darwish, CEO of Oman Housing Bank

Oman Housing Bank (OHB) was established in 1977 by the government.. The subsidy amount from the government comes to the bank and we lend it back to other customers.. OHB charges an interest rate of six per cent on its loans in the market, but the rate changes according to the Central Bank of Oman's guidelines.. Overall, our model helps low income earners.. Earlier we used to give out commercial loans but we have stopped it now as we have a huge waiting list of three years for our loans and are not in a position to give commercial loans due to liquidity constraints.. There are commercial banks which can give housing loans.. We have to find our liquidity from the market and we periodically take loans from the market.. We are constantly on the lookout for banks that give loans to the housing sector at low interest rates.. Another factor is that since the year that they start paying their instalments, their salaries have gone up, making it easier for them to service their loans.. The mandate of commercial banks is to attract and service people with higher income and not people with low or medium incomes.. For instance,