The Central Bank of Oman (CBO; Arabic: البنك المركزي العماني) was established in December 1974 and began operations on 1 April 1975.

The Sultanate has made significant progress in implementing the new capital Adequacy criteria laid down in the Basel-II Accord.

The adoption of Basel II would transform the current approaches and tools of supervision of the CBO as well as the audit and risk management practices of banks.

The CBO also has an early warning system for commercial banks that enables it to predict possible financial crises and take preventive action when necessary.

Direct monetary policy instruments used by the CBO are mainly in the form of reserve requirements and lending ratios.