The governor of the Central Bank of the Dominican Republic (BCRD), Héctor Valdez Albizuhighlighted yesterday the solidity of the main indicators of the banking national, during a meeting with presidents of the multiple banks of the country, with whom he reviewed the performance of the sector.
Valdez Albizuwho was accompanied by the superintendent of BanksAlejandro Fernández, stated that the sector continues to show high levels capitalization, profitability, solvency and quality of its credit portfoliowhich allow it to continue promoting the country’s productive activities.
He assured that financial intermediation entities maintain comfortable liquidity cushions, showing levels of overnight deposits in the BCRD for more than 96 billion pesos, of which 45 billion, that is, 46%, correspond to the Reserve Bank (Banreservas).
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Regarding this last entity, the official emphasized the excellent financial situation it presents, showing a healthy growth of its assets, presenting a balance of 1.35 billion, for a year-on-year growth of 7.4%, highlighting the quality of its credit portfolio, which amounts to 617 billion pesos (a year-on-year increase of 9.4%).
He detailed the investments in securities of Banreservaswhich amount to 415 billion pesos (a growth of 8.4%); his low delinquency1.3%; a coverage ratio for overdue loans of 192.7% (almost twice the level of the overdue portfolio); return on assets (ROA), 1.9%; return on equity (ROE), of 21.2%, and solvency ratio, of 17.6%, higher than the minimum required level.
These results reflect that the Reserve Bank sample top indicators to the average of the banking system, which allows it to continue offering its services efficiently and projects it with strength to address any situation that arises, both nationally and internationally, states a press release from the BCRD.
The governor expressed that “in a context like the current one of high uncertainty and in a turbulent and complex international environment, it is important to conduct ourselves with prudence to preserve the stability of our financial systemwhich is the backbone of the economy and on which the stability and growth of the Dominican Republic is based.”
Indicators of the banking
In relation to the liabilities of the financial system Dominican, these amounted to 3.6 billion of pesos, for an interannual growth of 9.1%, mainly composed of 87.5% by deposits from the public, which shows the confidence of economic agents and the general public.
Regarding profitability, the governor referred to the fact that the system presents profits at levels higher than those observed in the regional bankingsuch as the return on average assets (ROA) of 2.6% and on average equity (ROE) of 21.7%, which indicates that for every 100 pesos of equity, entities obtain profits of 21.7 pesos.
Likewise, he highlighted that the consolidated system currently shows a solvency index of 17.1%, well above the minimum of 10% required by the Monetary and Financial Lawat 183-02.
The indicators of the financial system relating to liquidity, profitability, capitalization and solvency, are a reflection of the healthy performance presented by the country’s financial intermediation entities, which have been corroborated by the main international organizations that monitor the evolution of the national economy, the press document states.
For its part, the Association of Multiple Banks of the Dominican Republic (ABA) as well as the representatives of the banks Reservas, Popular, BHD and Santa Cruz, highlighted the healthy situation which presents the financial systemhighlighting that it is in the stage of greatest transparency, which is why they invited the good climate of stability to be preserved, promoting the strictly technical debate on healthy indicators.
Participants
The meeting, held at the BCRD headquarters, was attended by the financial entitiesin addition to Rosanna Ruizhead of the ABA, Leonardo Aguilera, executive president of the Banreservas; Christopher Paniagua, from Popular; Steven Puig, from the BHD; Fausto Pimentel, from Banco Santa Cruz; Víctor Méndez Saba, from Banco Vimenca; Gonzalo Gil, from Scotiabank; José Rodríguez Copello, president of Banco López de Haro; Juan Rodríguez Copello, from Banco BDI.
Also, Edgar del Toro, of the Caribbean Bank; Andrés Bordas, from ADEMI; Luis Bogaert Ciaccio, general manager of JMMB Bank; Brian Paniagua, general manager of Banco Lafise; Arturo Grullón, vice president of Banco Qik, and Gianni Landolfi, vice president of Risks at Promérica.
