Card Networks Return
Syria's banking sector has begun reconnecting to the international financial system, with the first payment operations through the Visa and Mastercard networks now under way. The step marks an early return of card-based transactions that had been largely cut off from the global system for years.
It comes as authorities and international institutions work to rebuild the plumbing of a financial sector long isolated from cross-border banking.
A $100 Million Program
A World Bank project worth $100 million (USD) is under way to modernize the financial sector, running alongside a technical assistance program from the International Monetary Fund. The fund's effort covers banking regulation, supervision, and anti-money-laundering and counter-terrorism-financing frameworks.
Together, the two tracks aim to upgrade outdated payment infrastructure and strengthen the oversight banks need to deal with foreign counterparts.
Targets for Digital Payments
The World Bank program sets specific goals: 15 million electronic payment transactions a year and 500,000 individuals and companies actively using digital payments. It also calls for an independent review of asset quality across the entire banking system.
Such a review would give banks accurate data on non-performing loans, capital adequacy, and liquidity before any broad expansion of lending.
A Cash-Heavy System
Assessments describe the Syrian financial sector as small, heavily centered on banks, and dominated by cash, with weak financial intermediation and outdated payment systems. The banking system is also described as severely imbalanced, a condition that limits the transmission of monetary policy.
What Reconnection Requires
Syria remains on the Financial Action Task Force list of jurisdictions under increased monitoring, and support has been voiced for its eventual exit from that list. Analysts caution that card access carries technical and commercial value, but that fuller correspondent-banking relationships depend on sustained compliance systems and a track record of accurate reporting.
The recovery is framed as a gradual process that ultimately depends on the sector's capacity to finance the broader economy.