Syria Today | Turkey’s Isbank to enter Syrian market

Turkey’s Isbank to enter Syrian market

Isbank, one of the oldest and largest banks in Turkey, is to open a representative office in Syria before the end of the year.

Foreign banks providing advisory services have been allowed to open representative offices in Syria since May 2009. Fully fledged branches involved in profit-generating activities are not allowed, however.

Syria recently raised the maximum share foreigners may hold in a Syrian commercial bank from 49 to 60 percent, in tandem with a directive to increase the capital requirements of conventional private banks to SYP 10bn (USD 219.8m) from SYP 1.5bn (USD 32.9m).

In an interview with the online economic newsletter The Syria Report, Aykut Demiray, Isbank’s deputy CEO in charge of international affairs, said Turkish banks are more interested in establishing fully owned branches rather than sister banks.

“The new regulation is good, but does not satisfy the ambitions of most Turkish banks which are more inclined to open fully owned branches rather than establish and run sister banks,” Demiray said. “We hope the Central Bank of Syria will permit foreign banks to open fully owned branches. This will be easier for us, less costly and will avoid the high risks that come with establishing a fully fledged new bank.”