The governor of the Central Bank, Héctor Valdez Albizu, highlighted progress in financial inclusion and banking, achieved by the member entities of the Association of Savings and Credit Banks and Credit Corporations of the Dominican Republic (Abancord).
Valdez Albizu highlighted that the solidity of corporate governance practices has been key to facing the challenges risks and challenges that brings with it the digital transformation and the use of artificial intelligence in the financial system. “Good corporate governance not only reinforces confidence in the financial system, but also directly impacts the financial health of entities and, therefore, the stability of the entire system,” he explained.
In support of his claims, he shared financial indicators which show an annual growth of 16.5% in the assets of Savings and Credit Banks and Credit Corporations (BA&C), with a delinquency rate of only 1.9% and coverage for overdue loans of 137.6%.
Likewise, he mentioned that the system has reached a return on equity (ROE) of 20.5% and a return on assets (ROA) of 4.7%, allowing for a regulatory solvency of 18.5%, significantly above the minimum of 10% required by the Monetary and Financial Law.
The Governor also mentioned the adoption of key initiatives by union entities, such as:
- The use of collateral for credit to micro, small and medium-sized enterprises (MSMEs)
- The issuance of gender bonds, as a reflection of the commitment to sustainability and social inclusion
His statements were issued during the 10th Abancord Annual Congressheld under the theme “Transformative Perspectives of Corporate Governance: Challenges and Opportunities”, where the expansion of financial services to more than 882,000 active depositors was evident, mainly in remote and difficult-to-access areas.
The activity was held in a hotel in the country and had the participation of various financial entities and representatives of supervisory organizations, consolidating its relevance as one of the main spaces for reflection and analysis on the challenges of the financial sector in the Dominican Republic.
In his final exhortation, Valdez Albizu emphasized that “we must reflect on the duty that rests on the directors and participants of the Congress, to safeguard the conditions of certainty and credibility that financial institutions enjoy, through a modern corporate governance regime, robust and mature, which translates into the strengthening of our economy and its transition towards the investment grade“.
