Banking
From The Report: Syria 2026
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Syria’s banking sector entered 2026 with a clearer legal path to global reintegration and recovery, although liquidity, capital quality and depositor confidence have yet to return to levels needed to support the sector’s overall growth. After more than a decade of conflict, the easing of US and EU restrictions reopened scope for financial relationships, while the resumption of SWIFT connectivity and the Central Bank of Syria’s (CBS) reform strategy provide signs of institutional normalisation. Legal permissibility does not automatically translate into correspondent-bank confidence. Syria remains under Financial Action Task Force (FATF) monitoring. Banks continue to assess risks relating to know your customer (KYC), anti-money laundering and counter-terrorist financing (AML/CFT), beneficial ownership and transaction screening. Balance-sheet repair is critical to the sector recovery, as is a policy roadmap to rebuild monetary credibility.

This chapter includes insights from Mohammad Safwat Raslan, Omar Barhamji, Amir Rahwan, Michel Azzam, Sami Mounayer and Karam Bechara.

Articles from this Chapter

Overview

Path to reintegration: Rebuilding confidence and credibility as Syria works towards broader financial normalisation and global connectivity
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Syria’s banking sector entered 2026 with a clearer legal path to global reintegration and recovery, although liquidity, capital quality and depositor confidence have yet to return to levels needed to support the sector’s overall growth. After more than a decade of conflict, the easing of US and EU restrictions reopened scope for financial relationships, while the resumption of SWIFT connectivity and the Central Bank of Syria’s (CBS) reform strategy provide signs of institutional normalisation. Legal permissibility, however, does not automatically translate into correspondent-bank confidence. Syria remains under Financial Action Task Force…

Interview

Economic stabilisation: Mohammad Safwat Raslan, Governor, Central Bank of Syria, on sustainable progress, financial stability and rebuilding confidence
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Interview: Mohammad Safwat Raslan, Governor, Central Bank of Syria, on sustainable progress, financial stability and rebuilding confidence Which indicators best reflect the progress made in restoring macroeconomic stability since the recent change in government? MOHAMMAD SAFWAT RASLAN: Progress should be assessed by the correction of existing monetary imbalances and by the foundations being put in place to make stability sustainable. With the tools and resources available to it, the Central Bank…

Interview

Key developments: Omar Barhamji, CEO, Al Baraka Bank Syria, on opportunities within the sharia-compliant segment, and strategies to promote financial literacy and long-term investment
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Interview: Omar Barhamji, CEO, Al Baraka Bank Syria, on opportunities within the sharia-compliant segment, and strategies to promote financial literacy and long-term investment How do you assess the evolving demand for Islamic financing in reconstruction-linked sectors? OMAR BARHAMJI: Reconstruction is increasing demand for sharia-compliant finance. Asset-backed instruments including murabaha (cost-plus financing), istisna’a (deferred delivery), al salam (forward-sale contract) and musharakah…

Interview

Tailored services: Amir Rahwan, CEO, National Islamic Bank, on how sharia- compliant lending, policy reforms and digitalisation can help accelerate the reconstruction agenda
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Interview: Amir Rahwan, CEO, National Islamic Bank, on how sharia- compliant lending, policy reforms and digitalisation can help accelerate the reconstruction agenda How do you expect customer preferences and demand for retail banking services in Syria to evolve? AMIR RAHWAN: Demand in retail banking is being shaped by several opposing forces. On the one hand, liquidity constraints have pushed banks to impose strict withdrawal limits, which naturally slow the adoption of newer banking channels.…

Analysis

Gradual growth: Pace of expansion will depend on Syria’s economic recovery, investment reforms and international banking connectivity
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Islamic banking has become an established part of Syria’s financial sector since the enactment of Legislative Decree No. 35 of 2005, which established the legal framework for Islamic banking activities. As of mid-2026 the sector comprised of four licensed institutions: Syria International Islamic Bank (SIIB), Cham Bank, Al Baraka Bank Syria and National Islamic Bank (NIB). Together, these institutions mobilise deposits and provide financing to households and businesses through a range of sharia-compliant products, forming a distinct segment of Syria’s private banking sector. Islamic banks perform the same core financial intermediation functions…

Interview

Credit rebound: Michel Azzam, General Manager, Bank of Syria and Overseas, on restoring trust, expanding liquidity and financing
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Interview: Michel Azzam, General Manager, Bank of Syria and Overseas, on restoring trust, expanding liquidity and financing How is demand for short-term working-capital facilities shifting in import-dependent sectors? MICHEL AZZAM: Demand continues to rise. Syria’s commercial banks are structured for this type of activity. They finance merchandise cycles and trade-related needs in line with a deposit base that remains largely short-term. Over the past year, interest has increased as previously…

Interview

The road ahead: Sami Mounayer, CEO, Ahli Trust Bank, on the importance of digitalisation and improving information infrastructure
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Interview: Sami Mounayer, CEO, Ahli Trust Bank, on the importance of digitalisation and improving information infrastructure By what means is the banking sector adapting retail and lending models for small and medium-sized enterprises (SMEs) amid low purchasing power? SAMI MOUNAYER: The core challenge is the mismatch between household incomes and the repayment standards required for retail lending. Wages are too low to meet the typical 30% debt-service threshold, so even where demand exists, many…

Interview

Growth opportunity: Karam Bechara, General Manager, Shahba Bank, on challenges and opportunities facing the sector amid reconstruction efforts
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Interview: Karam Bechara, General Manager, Shahba Bank, on challenges and opportunities facing the sector amid reconstruction efforts In what ways is the macroeconomic environment shaping conditions for banks and their customers? KARAM BECHARA: What we are seeing on the ground is that inflationary pressures are still present, even as headline figures show early signs of moderation from earlier peaks. People continue to feel financial strain. The gradual removal of subsidies is adding to household…

Analysis

Ease of transfer: A number of remittance-focused financial technology players are expanding their role in emerging-market banking
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Financial technology (fintech) firms are gaining market share that was formerly the preserve of established remittance service providers. Remittances have grown in importance in recent years and now constitute the largest source of foreign income for many developing economies. They also tend to be countercyclical, increasing during economic downturns or natural disasters when other capital flows generally dwindle. Growth in the segment has gathered pace, with the importance of remittances as a source of income for emerging economies and financial service providers alike set to rise further in the coming years. Inflation & Investment As inflation…

Analysis

Streamlined transactions: Digital payment platforms see growth in emerging markets due to higher consumer demand and increased remittances
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Despite the ongoing macroeconomic and geopolitical headwinds experienced by the global economy, one area of the international financial system that has shown steady progression is digital payments. Since the Covid-19 pandemic, they have been spurred by a jump in remittance flows, and the greater availability of digital infrastructure and services, as well as higher demand for fast and seamless non-physical transactions. The trend is even more notable across low- and middle-income countries. While non-cash retail payments climbed by 13% globally between 2018-21, they rose by 25% across emerging markets during that time. Decentralised Payments While…