World Bank Approves $100m to Modernise Syria’s Financial Sector

Syria’s financial sector remains relatively small and centred around banks, with limited financial intermediation and digital payment infrastructure that requires substantial modernisation.

Syria is set to receive a US$100 million grant to rebuild and modernise key parts of its financial system, with new investment planned for digital payments, banking technology, cybersecurity and financial oversight as the country works to restore economic activity after 14 years of conflict.

The World Bank Board of Executive Directors approved the funding through the International Development Association for the Syria Financial Sector Modernization Project, which will focus on creating safer and faster financial transactions while giving households and businesses better access to financial services. The programme comes at a time when much of Syria's economy remains heavily dependent on cash and financial institutions continue to operate with outdated infrastructure.

Digital Payments at Heart of Financial System Upgrade

Syria's financial sector remains relatively small and centred around banks, with limited financial intermediation and digital payment infrastructure that requires substantial modernisation. These weaknesses make transactions more expensive and can restrict access to finance, while creating difficulties for the country's connections with international financial channels used for investment and trade.

The project will finance new payment and financial market infrastructure alongside technology needed to support secure financial flows across the economy. Credit infrastructure will also receive investment, while the Central Bank of Syria is expected to upgrade its core banking system, information technology and cybersecurity capabilities.

A stronger payments network could support everyday transactions ranging from wages and pensions to remittances and business payments, while providing more secure channels for humanitarian and development assistance, government payments and public revenue collection.

Banking Sector to Face System-wide Financial Reviews

Modernising technology is only one part of the programme, with the project also supporting changes to banking supervision, financial stability and financial integrity. The operational capacity of the Central Bank of Syria and the country's Financial Intelligence Unit will be strengthened through new systems, analytical tools, hardware and institutional support.

Independent Asset Quality Reviews are planned across both public and private banks, covering the entire banking system and providing a clearer assessment of financial institutions as groundwork for future reforms. Supervisors will receive technology and tools to strengthen risk-based oversight, including reviews related to prudential requirements and anti-money laundering and countering the financing of terrorism measures.

World Bank Middle East Department Director Dahlia Khalifa said a modern financial system was essential for Syria's economic recovery, with safer payments, stronger financial integrity and wider access to services needed to support households, businesses and private sector growth.

Project Targets 15 Million Electronic Payments a Year

The programme is expected to create the foundations for at least 15 million electronic retail payments annually during its implementation period, representing a significant move towards digital transactions in an economy where cash remains dominant.

At least 500,000 people and businesses are expected to actively use digital payments through systems supported by the project, including 150,000 women. These targets place financial inclusion alongside banking reform and technology upgrades as a central part of the investment.

A more reliable financial system could make it easier for Syrian businesses to conduct transactions, access finance and participate in trade, while giving households safer ways to send, receive and manage money as wider economic recovery continues.