Bank Resolution Framework for Oman
Central Bank of Oman (CBO) earlier undertook the task of identification and supervision of Domestic Systemically Important Banks (D-SIBs) in Oman. Following that, an enhanced regulatory & supervisory regime was put in place for the designated D-SIB. As a next step in this direction, CBO prepared the “Bank Resolution Framework for Oman” in line with the Financial Stability Board’s “Key Attributes of Effective Resolution Regimes for Financial Institutions”.
The Bank Resolution Framework is meant to prepare banks for self-propelled recovery, and if circumstances necessitate, allow authorities to resolve them in an orderly way with least disruption and minimal cost to the national exchequer while preserving financial stability.
The Bank Resolution Framework puts in place effective procedures to ensure that in the extreme event of any problems occurring at banks, the damage to the entire financial system of the country is kept at the minimum. The framework also incentivizes the banks to adopt strategies that enable the authorities to manage banking crisis with minimal use of public funds while preserving financial stability.
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