The banking sector is the backbone of the Sudan's financial system and will continue to play an important role as financial intermediary and primary source of financing for the domestic economy. As of December 31, 2003, there were 26 commercial and specialized banking institutions in Sudan which comprised 23 domestic banks and 3 foreign banks. The operations of these banks are based on Islamic principles. The Sudanese financial sector is small relative to Gross domestic product (GDP), but is rapidly growing. Deposits in the banking sector currently represent a little over 10 percent of GDP, and credit to the private sector has been rapidly expanding, driven by a strong economy. At present, the banking system is small enough that a crisis would not have much immediate impact on the overall economy.