Syria's banks are witnessing a cull at board level, adding to the already difficult conditions facing a sector hit by sanctions, losses and robberies amid a deepening civil war.
Officially reported as resignations, the changes come as individuals, some deemed too close to the regime, are being asked to step down to help to ease the pressure on financial institutions.
Other directors have shed their holdings in a bid to ensure they are not marked in the future.
"Some of the directors are politically exposed even though they are not formally sanctioned by the EU and their institutions are asking them to resign," said Anas Jawish, the listing and operations director at the Damascus Securities Exchange. "This has happened several times recently among several individuals."
Five out of the 12 lenders listed on the exchange have published regulatory filings posted on the bourse website to inform shareholders of an "emergency resignation" of board directors over the past two months, according to documents seen by The National.
In June, the United States put sanctions on Syria International Islamic Bank (SIIB), accusing the company of acting as a "front" for the Commercial Bank of Syria, also under US and international sanctions. "The sanctions on [SIIB] have triggered a big fear among bank directors about their personal and professional security," Mr Jawish said. "Many have been saying I don't want to have my name exposed in the future, or, to be associated with being on a board with somebody who is under sanctions," he added.
In some cases, the restructuring at board level has been a result of major shareholders who have been forced to sell their shares held as collateral on loans, as the economic crisis begins to take its toll on the wealthy, said a prominent investor who spoke on condition of anonymity.
"With the current shortage in liquidity, banks are executing on collateral or freezing accounts or property," he added.
Syria's private lenders, considered the crown jewels of president Bashar Al Assad's economic modernisation plan, are struggling with a mismatch of assets and liabilities amid a violent crackdown spurred by civil unrest. Until recently, lenders reported profits solely because of their foreign currency holdings as the Syrian pound collapsed over the almost year and half since the crisis began. They etched their first losses in the third quarter this year. Banking activity has almost completely halted, amid heavy withdrawals of deposits and loan defaults earlier this year.
The IMF has not provided figures on the Syrian economy since the start of violence.
The Damascus Securities Exchange has lost 40 per cent of its value since the uprising. The recent resignations reflect a lack of confidence from the country's business elite that Mr Al Assad's Baath-dominated government will survive, said Peter Middlebrook, the managing director of Geopolicy, an international management consultancy and think tank.
"There are people whose power comes from an affiliation from the government. But when the government may not survive, they start to leave positions to show that they don't have any loyalty to the government," Mr Middlebrook said.
But Syria's powerful business tycoons have been tough to evict.
They remain as shareholders without representation on the board.
Earlier this year, Byblos Bank removed the name of Rami Makhlouf, the cousin of Mr Al Assad and currently under international sanctions, from the public ownership listing of its Syrian subsidiary. Mr Makhlouf is a founding member and holds a 4.9 per cent stake in Byblos Bank Syria.
Meanwhile, Syrian financial institutions in the past three months have started reporting a rise of armed theft, looting and robbery at its branches located in "hot spot" areas.
Syria International Islamic Bank, its largest shareholder Qatar International Islamic Bank, last month said its Deir Al-Zor branch was subject to vandalism and theft.
"The event led to the complete destruction of belongings and equipment inside the building," the company said in a statement to the bourse.
"The bank has taken measures in the past to protect customer documents in a way that ensures the client and depositors rights," the statement added.
In September, the bank's Homs branch was targeted in a robbery that resulted in the loss of 75.2 million Syrian pounds (Dh3.9m). Banque Bemo Saudi Fransi, backed by Saudi Arabia's fourth-largest lender by market capitalisation, in the same month said it had incurred losses from fraud and forgery totalling 25m pounds in a separate filing.
halsayegh@thenational.ae
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Defending champions
World Series: South Africa
Women’s World Series: Australia
Gulf Men’s League: Dubai Exiles
Gulf Men’s Social: Mediclinic Barrelhouse Warriors
Gulf Vets: Jebel Ali Dragons Veterans
Gulf Women: Dubai Sports City Eagles
Gulf Under 19: British School Al Khubairat
Gulf Under 19 Girls: Dubai Exiles
UAE National Schools: Al Safa School
International Invitational: Speranza 22
International Vets: Joining Jack
'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
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RESULTS
6.30pm Al Maktoum Challenge Round-2 – Group 1 (PA) $49,000 (Dirt) 1,900m
Winner RB Frynchh Dude, Pat Cosgrave (jockey), Helal Al Alawi (trainer)
7.05pm Al Bastakiya Trial – Conditions (TB) $50,000 (D) 1,900m
Winner El Patriota, Vagner Leal, Antonio Cintra
7.40pm Zabeel Turf – Listed (TB) $88,000 (Turf) 2,000m
Winner Ya Hayati, Mickael Barzalona, Charlie Appleby
8.15pm Cape Verdi – Group 2 (TB) $163,000 (T) 1,600m
Winner Althiqa, James Doyle, Charlie Appleby
8.50pm UAE 1000 Guineas – Listed (TB) $125,000 (D) 1,600m
Winner Soft Whisper, Frankie Dettori, Saeed bin Suroor
9.25pm Handicap (TB) $68,000 (T) 1,600m
Winner Bedouin’s Story, Frankie Dettori, Saeed bin Suroor
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Get inspired
Here are a couple of Valentine’s Day food products that may or may not go the distance (but have got the internet talking anyway).
Sourdough sentiments: Marks & Spencer in the United Kingdom has introduced a slow-baked sourdough loaf dusted with flour to spell out I (heart) you, at £2 (Dh9.5). While it’s not available in the UAE, there’s nothing to stop you taking the idea and creating your own message of love, stencilled on breakfast-inbed toast.
Crisps playing cupid: Crisp company Tyrells has added a spicy addition to its range for Valentine’s Day. The brand describes the new honey and chilli flavour on Twitter as: “A tenderly bracing duo of the tantalising tingle of chilli with sweet and sticky honey. A helping hand to get your heart racing.” Again, not on sale here, but if you’re tempted you could certainly fashion your own flavour mix (spicy Cheetos and caramel popcorn, anyone?).
More about Middle East geopolitics
RESULTS
Welterweight
Tohir Zhuraev (TJK) beat Mostafa Radi (PAL)
(Unanimous points decision)
Catchweight 75kg
Anas Siraj Mounir (MAR) beat Leandro Martins (BRA)
(Second round knockout)
Flyweight (female)
Manon Fiorot (FRA) beat Corinne Laframboise (CAN)
(RSC in third round)
Featherweight
Bogdan Kirilenko (UZB) beat Ahmed Al Darmaki
(Disqualification)
Lightweight
Izzedine Al Derabani (JOR) beat Rey Nacionales (PHI)
(Unanimous points)
Featherweight
Yousef Al Housani (UAE) beat Mohamed Fargan (IND)
(TKO first round)
Catchweight 69kg
Jung Han-gook (KOR) beat Max Lima (BRA)
(First round submission by foot-lock)
Catchweight 71kg
Usman Nurmogamedov (RUS) beat Jerry Kvarnstrom (FIN)
(TKO round 1).
Featherweight title (5 rounds)
Lee Do-gyeom (KOR) v Alexandru Chitoran (ROU)
(TKO round 1).
Lightweight title (5 rounds)
Bruno Machado (BRA) beat Mike Santiago (USA)
(RSC round 2).
The view from The National
MATCH INFO
Day 2 at the Gabba
Australia 312-1
Warner 151 not out, Burns 97, Labuschagne 55 not out
Pakistan 240
Shafiq 76, Starc 4-52
Directed by: Craig Gillespie
Starring: Emma Stone, Emma Thompson, Joel Fry
4/5
WITHIN%20SAND
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World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
New Zealand 15 British & Irish Lions 15
New Zealand 15
Tries: Laumape, J Barrett
Conversions: B Barrett
Penalties: B Barrett
British & Irish Lions 15
Penalties: Farrell (4), Daly
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
SPEC%20SHEET%3A%20NOTHING%20PHONE%20(2)
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Pathaan
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The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
How to tell if your child is being bullied at school
Sudden change in behaviour or displays higher levels of stress or anxiety
Shows signs of depression or isolation
Ability to sleep well diminishes
Academic performance begins to deteriorate
Changes in eating habits
Struggles to concentrate
Refuses to go to school
Behaviour changes and is aggressive towards siblings
Begins to use language they do not normally use
