Central Bank of Oman Circular BM 1225 - Business Continuity Management Framework

Central Bank of Oman

Circular BM - 1225

Classification: General
Date: 6 January 2026

To: All Licensed Banks and Finance & Leasing Companies Operating in the Sultanate of Oman

After compliments,

Subject: Business Continuity Management Framework

1. The stability and integrity of the banking and financial systems depend on the ability of licensed institutions to continue providing critical financial services in the face of disruptions. In an environment characterised by increasing digitalisation, complex interdependencies, cyber threats, pandemic-driven modified work processes, climate-related events, and reliance on third-party service providers, operational disruptions have the potential to cause significant harm to customers, undermine confidence in the financial system, and pose risks to financial stability.

2. Licensed Institutions in the Sultanate operate in an increasingly complex operating environment characterised by high levels of digital adoption, growing reliance on shared financial infrastructures, and extensive use of outsourced and third-party service providers, including cloud-based technology services. At the same time, licensed institutions are exposed to a wide range of operational disruption risks, including cyber incidents, technology outages, physical events, third-party outages, compound scenarios involving multiple simultaneous failures, geopolitical developments, pandemic induced disruptions and climate-related risks. These developments underscore the need to adopt a forward-looking, service-centric, and end-to-end approach to business continuity, extending beyond recovery of individual systems to the resilience of important business services as a whole.

3. In this context, a robust Business Continuity Management (BCM) framework forms an integral component of sound governance and operational risk management framework. An effective BCM framework enables licensed institutions to identify critical services, understand end-to-end dependencies, and establish appropriate recovery arrangements to ensure the continued provision of essential banking and financial services under severe but plausible disruption scenarios. This is particularly important in the Sultanate, where concentrations in payment systems, telecommunications networks, and service providers may amplify the impact of operational disruptions.

4. The Central Bank places strong emphasis on the role of the Board of Directors and senior management in overseeing business continuity and operational resilience. The Board of Directors are expected to set clear expectations, approve appropriate tolerance levels for service disruption, and ensure that management allocates adequate resources to maintain resilience commensurate with the size, complexity, and systemic importance of the licensed institutions. Senior management is responsible for translating these expectations into effective strategies, plans, and tested recovery capabilities.

5. A comprehensive BCM framework also supports convergence with international supervisory standards and best practices, including those issued by the Basel Committee on Banking Supervision. Such convergence promotes consistency, enhances supervisory effectiveness, and strengthens confidence in the banking and financial systems, particularly in jurisdictions with cross-border operations and interconnected financial infrastructures.

6. Accordingly, the Central Bank of Oman has formulated the BCM framework, as per the attachment, to provide supervisory guidance and set clear expectations regarding the establishment, implementation, and ongoing maintenance of effective business continuity capabilities in licensed institutions. The requirements aim to ensure that licensed institutions in the Sultanate remain operationally resilient, capable of withstanding and recovering from disruptions, and able to continue delivering critical financial services in support of financial stability and sustainable economic growth. Banks and Finance & Leasing Companies (FLCs) are advised to prepare and finalize their BCM framework by June 30, 2026 in line with the said framework and ensure its prompt implementation.

7. We also advise that this Framework replaces the BCM Guidelines published vide circular letter number BED/ Banks/ FLCs/10-Gen-485/674 dated 2nd August 2010.

Best regards,

[Signature]

Ahmed Al Musalmi
The Governor

Encl: Business Continuity Management Framework