National Bank of Oman (NBO), the second largest bank by assets in the sultanate, launched its Islamic banking window under the name 'Muzn' on Monday.
Speaking to journalists on the sidelines of the launch event, Ahmed al Musalmi, deputy CEO of NBO, said that the Islamic banking window has been allocated an initial capital of RO15mn and will start operations as soon as regulations are announced in Oman.
He said, "We will be ready to launch operations as soon as Islamic banking regulations are out. Islamic banking will intensify competition in the market. But there is opportunity for innovation and creativity that each bank has to exploit to compete in the market.
"The guiding principle behind the Muzn branding is to create ethical value for all stakeholders through innovation, customer care and superior standards of operation."
Ehab Hashish, head of Islamic banking at NBO, said that the bank has the approval of its board of directors to increase capital allocation for its Islamic window as the need arises.
He said, "Initially we will start with RO15mn, but as we go along this will be increased with available business opportunities in the market. We hope to be a prominent player with a good market share in the sultanate."
Hashish added that the Islamic banking window will focus on both retail and corporate segments of the business from the beginning.
He said, "Initially, focus will mainly be on the liability side of retail banking and the financing side of corporate banking to build a balance sheet with a good mix.
"Initially we will start with murbaha and ijarah [Sharia-compliant banking products] which are basic products which the market can easily absorb. As we see the market evolving in terms of offerings we will launch other products as well."
© Muscat Daily 2012
