The Central Bank of Oman (CBO) is the regulatory and supervisory authority of the banking sector in the Sultanate of Oman. Therefore, it assumes the responsibility of enhancing financial and monetary stability in the Sultanate of Oman, together with strengthening and developing the country's banking and financial sector while ensuring sustainable economic growth. Monetary stability means stable prices and confidence in the currency. Financial stability entails detecting and mitigating threats to the financial system as a whole.
In order to achieve the above purposes, CBO performs various functions as mandated by Banking Law 2025, as follows:
- Issuing, retaining, and withdrawing the currency of the Sultanate from circulation.
- Formulating and implementing monetary policy pursuant to the directives of the Board.
- Exercising exclusive authority over the regulation, supervision, and oversight of licensed activities, licensed banks, and financial institutions.
- Providing advances or financing to licensed banks and financial institutions as part of its role as the lender of last resort.
- Establishing the rules and requirements for financial conduct, customer protection, financial literacy and awareness, including the exclusive authority to issue the necessary regulations, decisions, instructions, and circulars.
- Issuing regulations and instructions for licensed banks concerning net worth, regulatory capital requirements, capital adequacy, governance, risk and liquidity management, consolidated supervision, and identification of related parties and entities subject to such supervision, among other matters.
- Issuing special instructions for licensed banks and financial institutions to create adequate provisions for non-performing, doubtful, or worthless assets and to account for these in their records, financial statements, and reports submitted to CBO.
- Setting rules and controls for opening bank accounts and offering banking products related to banking business and financial activities.
- Taking all necessary and appropriate measures to ensure the safety, efficiency, and proper functioning of licensed banks and any financial institution authorized to accept deposits, and designating any licensed bank or financial institution as systemically important, with authority to mandate necessary actions or measures.
- Collecting, analyzing, and exchanging data and information, conducting research and studies, and publishing statistics related to its functions and duties, pursuant to the rules and procedures it establishes. The Central Bank shall also prepare monetary, banking, balance of payments, and international investment position, and other statistics, and publish such statistics, data, and information in full or in part. The units of the Administrative Apparatus of the State, as well as other public legal persons, companies, banks, and financial institutions operating in Oman must provide the Central Bank with the requested information and data as specified.
- Regulating and defining the specifications and rules for signing transactions conducted by CBO with licensed banks and financial institutions, as well as banking transactions and payment orders, including acceptance of the respective terms and conditions. In this regard, CBO shall have the authority to act as an electronic certification authority.
- Issuing regulations, bylaws, and instructions for the promotion of financial inclusion to ensure public access to banking and financial services offered by licensed banks and financial institutions.
- Establishing rules, requirements, and procedures for licensed banks and financial institutions to collect, store, maintain privacy, and protect all data and information related to licensed activities, as well as the handling thereof.
- Advising the Government of the Sultanate of Oman on domestic and international economic and financial matters.
- Participating in regional and international monetary conferences, events, and activities, as well as in the processes, negotiations, and decisions of international financial organizations and institutions in which the Sultanate is a member.
- Entering into agreements and memoranda of understanding with foreign central banks and regulatory authorities, both domestic and international, to coordinate and cooperate in regulatory and supervisory matters and the exchange of information, without being subject to the procedures applicable to units of the Administrative Apparatus of the State and other public legal persons in this regard.