Laws and Regulations
Banking business is a very crucial activity in any economy and banks have a very critical and catalytic role to play. Conduct of banking business is dependent utmost upon depositors’ trust and trust will be reposed and retained by the way banks do business, concomitantly contributing to growth and stability.
It is but appropriate that the sectoral orderliness, predictability and credibility are maintained by systematically and transparently set rules. Laws and regulations, primary legislations, contribute to them with elaborations, clarifications and guidance coming from circular instructions.
In sultanate of Oman, there are established generally applicable laws like Oman Commercial Law and Commercial Companies Law. Specific laws like Banking Law and Capital Market Law form foundations for banking institutions and capital market related institutions. While, essentially, bank related requirements are guided by needed prudence, capital market regulations focus on disclosure.
Banks in Oman can do universal banking ie., both commercial and investment banking business -subject to specific licenses and requirements. While Banking Law provides for licensing, regulating and supervising Islamic banking too, there are other supportive laws like Law on Combating Money Laundering and Terrorism Financing also.
Banking Law like other laws is drafted on best industry practices and internationally accredited standards. The laws along with regulations and instructions and guidelines get updated for new and evolving needs and standards and contribute to large public interests including fair banking practices and consumer protection besides facilitating financial inclusion and stability and diversified growth.