Banking
Plain Vanilla Is No Longer A Banking Flavor
As we look out at 2009, the money market in the Middle East is, by default, mainly connected to our most valued commodity, black gold. The breakdown of Bretton Woods in the early 1970s, which provided the impetus to floating exchange rates, coupled with the recycling of petrodollars through the Euromarkets beginning with the first OPEC oil embargoes of the mid 1970s, provided institutions with the instability of markets and the ready supply of funds to introduce a wide range of international banking products and services.
The retail banking boom in Syria
Joelle Estefane
The Syrian market has witnessed an increase in retail consumption since the introduction of private banks in 2003. Previously, personal loans and consumer products were hardly accessible to average income individuals. Housing loans for example, were only available through one of the public sector’s specialized financial institutions. Burdensome document requirements, however, made loan requests increasingly difficult. Now banks are engaged in a ‘cat fight approach’ to secure the recognition of innovation in a virgin-like environment, cramped with regulatory and disclosure related challenges. They are seeking to acquire a market share that will ultimately establish leadership in one sector of the business. Retail banking is profitable with low diluted risks, and stable source of interest and non-interest income.