Monetary And Banking System Of Syria

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ISBN 13 : 9789294660237
Total Pages : pages
Book Rating : 4.6/5 (62 download)

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Download or read book The Private Banking Sector in Syria written by and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: A decade after the beginning of the Syrian uprising in 2011, the country's private banking sector is facing many challenges and obstacles. Private banks were forced to considerably reduce their operations as a result of the destruction of the Syrian economy and international sanctions, which have further isolated the country's banking system from the world market. Moreover, the real value of private banks' assets and deposits has significantly contracted since 2011. Foreign entities with strategic partnerships in the sector have mostly taken a passive approach while some have sought to cut all relations with Syria, leading to complete withdrawals from the country in some cases. At the same time, prominent businessmen including, but not exclusively, sanctioned individuals have resigned from the boards of directors of the private banks and have sold their shares in the companies. Most of the members of the new class of business figures who emerged during the war have not invested in this sector, with the notable exception of a few prominent individuals. In this context, only a small proportion of the private banks have tried to remain active in the Syrian market through various types of operations including loans. At the same time, these banks have sought to capture international funding for humanitarian assistance in regime-held areas. Microfinance is also seen by some private banks as an opportunity to expand their reach among the Syrian population, which suffers from an extremely high level of poverty. This, however, is not enough to expect the private banking sector to play a vital role in a potential recovery of the economy or a reconstruction process.