Banking Law 2000, a revision of 1974 Law, sets its objectives, among others, to be the promotion of development of banking institutions to ensure financial stability and growth and empowering the Central Bank for maintenance of value of the domestic currency and supervision of banking business.
The Law has reckoned accredited international standards and norms and best Central Banking practices and empowers the Board of Governors suitably and highlights the functions of the Central Bank, broad parameters on licensing, regulating and supervising banks and banking business and certain prudential norms and limitations - besides way forward in the process of voluntary or involuntary exit of banks.
Some recent amendments include powers for Board of Governors to adopt appropriate recommendations of international agencies and supra-national organizations and addition of Title Six to enable authorize, regulate and supervise Islamic Banking in Oman.