Between 2021 and 2022, deposits or savings deposits in the multiple banks have shown a stable behavior, with some changes in their composition, reflecting in the preferences of savers towards deposits with longer maturities and higher profitabilityreported today the Association of Multiple Banks of the Dominican Republic (ABA).
The ABA explained that deposits are the main source of resources used by multiple banks to carry out its financial intermediation operations, among them, the most important: the credit financing for homes and businesses.
Total deposits
According to a statement, during the first nine months of 2022, total deposits grew at an annual average of 13.9%, a rate quite similar to that observed during the same period in 2021 (15.4%), stated the ABAtaking statistics from the Superintendency of Banks as reference.
“This means that despite the global economic situationbank deposits have shown a stable and resilient behavior”, valued the union in the press document.
Similarly, he recalled that deposits are made up of all types of deposits available in the banks: sight deposits, savings depositstime deposits, securities (certificates) held by the public and interbank deposits.
Jointly, the ABA indicates that these savings instruments they account for approximately 85% of banks’ total liabilities.
“Beyond the stability in its growth rate, it is important to highlight some changes that are observed in terms of the composition of savings”Association of Multiple Banks
The ABA stated that, as of August 2022, long term deposits they increased 64.6% compared to the same month of 2021.
The union commented that this last data reveals a greater preference of the savers for the time depositswhich are characterized by having a longer maturity term and higher yields, compared to demand deposits or deposits of saving.
This reflects the intention of the savers to take advantage of the current environment interest rates more attractive.
The banking union pondered that, even since 2020, the year of the pandemicand in the current context, the multiple banking The Dominican Republic maintains solid indicators of liquidity, asset quality, profitability and solvency.
