Banking reforms in Syria

Abstract

The Banking Sector plays an important role in the economic development of a country. In developing countries, especially in Syria, the banking sector represents the backbone of the Syrian economy and has been playing an important financial intermediary role since 2003. The Syrian authorities embarked on a reform agenda to develop the financial sector and improve intermediation. A number of laws and regulations have been put in force. This paper seeks to provide an overview of the Syrian banking system reform process through examining and analyzing the financial indicators of the banks in Syria, for the period (2000-2010). This study adopted analytical descriptive method in research based on the analysis of the data annual reports. The study found out that despite the achievements made so far, considerable challenges remain, including the establishment of indirect monetary instruments, the reduction of the role of the government in credit allocation, and the removal of the large excess liquidity in the banking system and the Syrian money market is still insufficiently developed.