Amman:Syrian Central Bank Governor Mohammed Raslan announced the progress in banking cooperation with Jordan, emphasizing the necessity to attract more capital, expertise, and international institutions to aid in the reconstruction of Syria's financial sector.
According to Jordan News Agency, Syria is actively working to attract Arab banks and foreign investment to revitalize its financial system, enhance payment channels, and boost economic growth. Jordan's geographic proximity and established trade relations, along with its investments in Syria, position it as a significant player in these financial developments.
Jordanian banks, such as Arab Bank - Syria, the International Bank for Trade and Finance, and Bank of Jordan - Syria, already have a presence in Syria, providing a foundation for expanding cross-border cooperation. These banks aim to meet increasing corporate and consumer demands. Meanwhile, Jordanian financial institutions are assessing opportunities to deepen their involvement in Syria's banking sector.
Discussions held in Amman between Raslan and leaders from Jordan Ahli Bank, Bank al Etihad, and Commercial Bank of Jordan focused on opening new payment channels and licensing additional banks in Syria. This initiative is intended to introduce new institutions into Syria, increase market competition, and diversify financial services.
Collaboration between Amman and Damascus is deemed crucial for trade and investment financing, cross-border payments, and the provision of financial services. Developing correspondent banking relationships and payment channels is essential for facilitating trade and settling financial obligations efficiently, supporting trade finance instruments, and managing liquidity.
Central Bank of Jordan Governor Adel Sharkas has previously stressed the importance of enhancing banking cooperation with Syria in several areas, including trade finance and digital financial services. Strengthening these ties requires investment in financial infrastructure, compliance with regulatory requirements, and measures against money laundering and terrorist financing.
Renewed banking ties with Syria present opportunities for Jordanian institutions in trade finance, corporate banking, digital services, and project financing. However, this requires a careful assessment of risks, legal and regulatory safeguards, and effective liquidity management.
The Syrian Central Bank is also exploring financial technology and artificial intelligence to modernize operations and improve efficiency. Governor Raslan highlighted the potential of these technologies to enhance transaction processing and customer service, and discussions with specialized companies are underway to explore their applications.
The successful implementation of these technologies will necessitate secure digital infrastructure, staff training, and regulatory frameworks to protect banking information. Jordan's banking expertise and existing investments could facilitate the enhancement of bilateral financial services, particularly in financing, governance, and digital transformation.
For Syria, the challenge remains to expand access to financing, improve payment systems, and restore confidence in its financial sector.