Amman, Oct. 21 (Petra) - Syrian Central Bank Governor Mohammed Raslan said on Wednesday that banking cooperation with Jordan is already underway, noting the need to attract more capital, expertise, and international institutions to rebuild Syria's financial sector.
Syria is ramping up efforts to attract Arab banks and foreign investment to rebuild its financial system, modernize payment channels, and spur economic growth.
Jordan’s geographic proximity, robust trade relations, and deep regional expertise, alongside its current investments in Syria, make the Kingdom a major player in advancing these financial initiatives.
With established operations like Arab Bank - Syria, the International Bank for Trade and Finance, and Bank of Jordan - Syria, Jordanian banks offer a platform to broaden cross-border cooperation and meet growing corporate and consumer needs.
Jordanian banks are also exploring opportunities to deepen their engagement with Syria.
During meetings in Amman, Raslan spoke with leaders from Jordan Ahli Bank, Bank al Etihad, and Commercial Bank of Jordan about opening new payment channels and licensing new banks in Syria.
The initiative seeks to bring new institutions into Syria, drive market competition, and diversify financial services across the sector.
Cooperation between Amman and Damascus is particularly important for trade and investment financing, cross-border payments and transfers, and the provision of financial services to businesses and investors.
Developing correspondent banking relationships and cross-border payment channels is essential to facilitating trade and settling financial obligations more efficiently. These channels can also support trade finance instruments, including letters of credit, documentary collections and liquidity management.
In previous remarks, Central Bank of Jordan Governor Adel Sharkas pointed to the importance of bolstering banking cooperation with Syria in trade finance, payment and transfer channels, supervision and governance, risk management, and digital financial services.
Progress will depend on continued investment in financial infrastructure, stronger correspondent banking relationships, and compliance with regulatory and supervisory requirements, including measures to combat money laundering and terrorist financing and verify customers and sources of funds.
For Jordanian financial institutions, renewed banking ties with Syria could create opportunities in trade finance, corporate banking, transfers, digital services and project financing. Such services could help businesses and investors operate more efficiently, particularly in sectors requiring specialized financial support.
However, pursuing these opportunities requires careful assessment of credit and operational risks, adequate legal and regulatory safeguards to protect depositors and investors, clear monetary and supervisory policies, and effective liquidity management.
Expanding banking activity will also require stronger public confidence, improved credit assessment tools and the allocation of financial resources to productive activities and viable projects, rather than limiting banks’ role to processing payments and transfers.
Banks can contribute to economic recovery by mobilizing savings and directing them toward investment, helping businesses and individuals access the financial services they need.
Jordan’s existing investments and regional banking experience provide a basis for further cooperation, although any expansion will depend on market conditions, licensing and compliance requirements, commercial viability and the risks associated with operating in Syria.
Alongside efforts to strengthen ties with Arab banks, the Syrian Central Bank is exploring the use of financial technology and artificial intelligence (AI) to modernize banking operations and improve efficiency.
In an interview with Petra, Raslan said Syria's central bank was studying how neighboring countries and other economies use artificial intelligence in banking, with a view to adopting relevant practices at the central bank and sharing expertise with banks operating in Syria.
He said these technologies could reduce processing times and improve the quality of banking operations, adding that discussions were underway with specialized companies to explore their potential applications.
Raslan pointed to the need for clear supervisory frameworks to protect data and maintain banking confidentiality, adding that technological transformation must go hand in hand with governance, risk management and oversight.
When implemented with appropriate safeguards, AI can help accelerate transaction processing, improve customer service, strengthen data analysis and risk assessment, and enhance the detection of suspicious activity.
Realizing these benefits will require secure digital infrastructure, staff training, clear data governance policies and effective regulatory frameworks to protect banking information and ensure reliable operations, according to the governor.
Financial technology could therefore play an important role in modernizing Syria’s banking sector, provided it is accompanied by improvements to systems, procedures and institutional capacity that strengthen efficiency, security and transparency.
Jordan’s banking institutions, existing investments and technical expertise could help improve bilateral financial services, particularly in financing, governance, risk management and digital transformation.
For Syria, the broader challenge remains expanding access to financing, improving payment and transfer systems, widening the range of banking services and restoring confidence in the financial sector.
//Petra// HA
