Economic Challenges and Reform Options: Case Study of Syrian Banks

Five years into the disastrous conflict that has killed thousands of people, much of the Syrian banking sector lies in ruins. Under this tragic and ongoing dilemma, the Syrian banking sector is struggling to survive. Taking this into consideration, this work focuses on the basic reform needs for the Syrian banking sector so as it becomes secure, transparent, safe and efficient allowing it to rebuild the needed international confidence, to cancel the western and European sanctions and to enable Syria to compete again with the neighbor countries. These reforms include the restructuring of the whole banking system in addition to the reforms to be undertaken by the state to enable public banks to work along with private banks despite the tragic war. An overview of the laws that govern the establishment of private banks, the licensing of these banks and the opening of new branches is also achieved. Moreover, in order to be able to discuss this reform process, a brief look at the Syrian banking sector constitution and the causes of its deterioration is essential.