To: All Licensed Banks Operating in the Sultanate of Oman

After compliments,

Central Bank of Oman (CBO) undertook the task of identification and supervision of Domestic Systemically Important Banks (D-SIBs) in Oman in 2015. Following that, an enhanced regulatory & supervisory regime was put in place for the

designated D-SIB. The enhanced regulatory & supervisory regime, inter alia, includes capital surcharge for systemic significance, regular bilateral meetings with the D-SIB, and Recovery & Resolution Planning.

As a next step in this direction, CBO has finalized the "Bank Resolution Framework for Oman" in line with the Financial Stability Board's "Key Attributes of Effective Resolution Regimes for Financial Institutions". The purpose of the Framework is 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 attached "Bank Resolution Framework for Oman" spells out the recovery and resolution regime for the banking sector in Oman. The Framework will be applicable to all banks designated as D-SIBs by CBO, and at its discretion, CBO may apply all or parts of the framework to any other banks licensed by it.

CBO will separately issue instructions on Recovery/ Resolution Planning to the

banks that are required to prepare and submit such plans.

Best regards,

Tahir Salim AL Amri

Executive President