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Posted By Admin @ Mar 01, 2022

Tittle: Report on Bank Nizwa In Oman

type: Report

Subject: Banking




Introduction of BANK NIZWA in Oman

Bank Nizwa is considered the first Islamic bank in Oman which served its customers according to sharia compliance in dealing with its products and services. The bank offers a portfolio for the other commercial banks which were issued by the Central bank and banking law enforced in Oman by the Royal Decree no. 114/2000. Bank Nizwa is a public based bank which was founded in 2012 as Islamic banking and currently operated 13 branches in the Sultanate of Oman. The product and services of the Bank Nizwa are current accounts, savings account, Marhaba finance, Hijrah finance and other Islamic terms functioning in the banking industry. Its headquarter is in Muscat, and it is listed in the Muscat Stock Market. In December 2018, the bank-owned 353 to 600 employees who are engaged in serving the people of Oman (S. Al-Muharrami, 2015).

The research paper is based on the different tasks which are divided into different sections to elaborate on the various terms relevant to Bank Nizwa. The first task is a discussion about the capital market and its different efficiencies in Muscat stock Market. Capital market is referred to as the terms which explained the medium where the Bank Nizwa exchange the shares in terms of investment with the saving of people. The most common capital markets in the Muscat Stock Market are the stock market and the bond market. The second task is to explain about the informational efficiencies of Bank Nizwa, which includes the funding investment in the bank by people. The third task is a discussion about the implication of Efficient Market Hypothesis (EMH) which exist in there forms different form of allocation of resources. It includes different approaches of Efficient Market Hypothesis (EMH) in bank nizwa, which are implemented by the management of the bank (V. Arora, Nravichandran, & Jain, 2011).

Conceptualization and its Importance and Analysis of EMH

1. Capital Market and Efficiencies of BANK NIZWA in Oman

Capital market refers to a market where buyers and sellers trade financial products including securities, stock, and bonds. Such buying and selling practices can be undertaken by the institutes and individual entities. Different types of market efficiencies include informational efficiency for traders, allocative efficiency and operational efficiency of the capital market. According to the research study, information about market value and current market prices should be reflected in capital markets for information efficiency (Al-Habsi & Al-Amri, 2017). The rationality of investors and tractions supported with cost-effective practices ensure operational efficiency in the capital market. Many companies listed on Muscat Stock Market are following the strategies which promote efficiency in the capital market. Bank Nizwa Oman is one of those companies which are listed on Muscat Stock Market. The analysis shows that Bank Nizwa Oman is projecting all important information about its financial operations and outcomes for its investors. Information about corporate management and future projects of the Bank Nizwa enables the proposed investors to make the right decision about investment in the offered securities, stock, and bonds of the bank. According to the research study, investors invest in active management if the market is inefficient in a particular sector. Although, rational investors earn abnormal returns and profit from stock because of stock market growth and an increase in the stock prices. The researcher also concludes that macroeconomic variables also draw an impact on capital markets such as the stock market. An increase in interest rate changes investors' response towards interest-bearing securities and bonds. While the change in the market value of shares is also a turning point for investors regarding a particular listed company on Muscat stock exchange.