The Central Bank of Syria issued a decision allowing microfinance banks to open offices in various locations, including large commercial complexes (malls), “flexible office” service companies, universities, and citizen service centers. In a statement issued on Sunday, August 18, the bank explained that these banks could open offices in other qualitatively similar locations, specifying the activities that can be conducted through these offices.
The decision aims to support the operations of microfinance banks established under Law No. 8 of 2021, enhance their reach, and reduce operational costs where appropriate, according to the statement. Offices established under this decision are permitted to engage in several activities, including opening current accounts, preparing files for customers seeking financing or loans from the bank, receiving loan or financing installments, marketing the bank’s services and products, and performing similar activities as those permitted for banking offices in independent locations. However, the statement clarified that these offices are excluded from certain activities, such as accepting deposits and disbursing loan amounts, which remain the exclusive responsibility of independent banking offices and branches.
Microfinance involves providing small loans to low-income individuals who are unable to obtain them through traditional banking channels, helping them create jobs, engage in productive activities, or develop their microenterprises. According to Law No. 8 of 2021, microfinance banks grant operational loans to low-income individuals to secure additional income, create jobs, and achieve sustainable development, as reported by the official Syrian News Agency (SANA).
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.
