Why haven’t Syrian banks collapsed under sanctions and war?
▻http://www.washingtonpost.com/blogs/monkey-cage/wp/2015/08/03/why-havent-syrian-banks-collapsed-under-sanctions-and-war/?postshare=7051438620324954
In their effort to isolate the Syrian regime, the United States and the European Union have imposed sanctions on dozens of security officials, politicians, and businessmen, some of whom are shareholders and board members of these private banks. Sanctions were intended to disrupt the close linkages between business and politics in the country and drive a wedge between these closely forged relationships. However, this policy has largely failed. Most of these businessmen have substantial investments in the country that outweighed their overseas assets and commercial interests. Their inextricable connections with the ruling political elite have made them highly invested in the survival of the regime.
More than four years of biting sanctions have not resulted in any critical mass of businessmen abandoning the embattled regime. While very few have decided to divest from these banks, others have actually increased their investments in spite of the severe operational, security and reputational risks. The considerable investments they have made and the need for a privately and internationally funded nationwide reconstruction plan after the end of the conflict will outweigh the prospects for an exit from the country. Ironically, the future rebuilding of the country might rest in their hands, unless a new government decides to confiscate those businessmen’s assets and deal a strong blow to the sector.