The Central Bank of Oman (CBO) issued the bank resolution framework, which provides the recovery and resolution regime for the banking sector. The purpose of the framework is to prepare banks for self-propelled recovery and, if circumstances necessitate, allow authorities to resolve banks in an orderly manner with least disruption and minimal cost to the national exchequer while preserving financial stability. The framework will be applicable to all banks designated as domestic systemically important banks (D-SIBs) by CBO. At its discretion, CBO may apply all or parts of the framework to any other bank it licenses.
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 offers incentives to banks to adopt strategies that enable the authorities to manage banking crisis with minimal use of public funds while preserving financial stability. With proper incentive structure and effective procedures in place, the public perception on the robustness of the health of the banking sector would improve and that would eventually boost the financial stability in Oman. CBO will separately issue instructions on recovery and resolution planning to the banks that are required to prepare and submit such plans.
With the issuance of bank resolution framework, CBO has become one of the first central banks in the region to formalize its bank recovery and resolution regime, which reflects its commitment to continue to enhance its regulatory and supervisory framework in line with the international best practices and evolving industry dynamics. The release of the resolution framework in Oman is in line with the FSB-published "Key Attributes of Effective Resolution Regimes for Financial Institutions."
Keywords: Middle East and Africa, Oman, Banking, Resolution Framework, Financial Stability, D-SIBs, FSB, CBO
Previous ArticleIFRS Releases Taxonomy Formula Linkbase 2019
EC published the Implementing Regulation 2021/763 that lays down implementing technical standards for supervisory reporting and public disclosure of the minimum requirement for own funds and eligible liabilities (MREL).
EBA published a report that examines the convergence of prudential supervisory practices in 2020 and offers conclusions of the EBA college monitoring activity.
APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.
The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).
Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.
EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).
The Sustainable Finance Taskforce of IOSCO held two roundtables, with global stakeholders, on the IOSCO priorities to enhance the reliability, comparability, and consistency of sustainability-related disclosures and to collect views on the practical implementation of a global system architecture for these disclosures.
Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA
ESMA published the final guidelines on outsourcing to cloud service providers.
EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.