Syrian Arab Republic Introduces New Banking Compliance Procedures

The Syrian government has taken a significant step towards liberalizing its banking sector with the introduction of new regulations, allowing for the establishment of investment banks in the country for the first time.

Key Provisions of the Law

• The law requires a minimum capital requirement of S£20 billion (approximately US $426 million) to be paid in full before a bank can begin operating.
• Foreign ownership is capped at 25 percent, but can be raised to 49 or 60 percent with Cabinet approval.

Services Offered by Investment Banks

Under the new regulations, investment banks will be authorized to provide a range of services including:

• Financial and administrative advisory services
• Consultancy for developing banking services
• Mergers and acquisitions advice
• Project finance
• Trading in securities

Investment banks will also be permitted to invest up to 15 percent of their paid-up capital in other companies or funds.

Implications of the Law

The introduction of these new regulations is seen as a significant step towards liberalizing the Syrian banking sector and attracting foreign investment. However, experts warn that the high minimum capital requirement may deter some potential investors. The government’s decision to introduce these new regulations is likely intended to boost economic growth and development in the country.

Conclusion

The Syrian government’s move to introduce new banking compliance procedures is a significant step towards liberalizing its banking sector and attracting foreign investment. While there are concerns about the high minimum capital requirement, the law has the potential to boost economic growth and development in the country.