The Association of Multiple Banks of the Dominican Republic (ABA) assured this Monday that the solvency levels of the banking sector remain healthy, standing out over the years for occupying leading positions compared to their peers in the region, as evidenced in recent official statistics.
In that sense, through a press release, he described as outstanding that the financial sector exhibits a solvency ratio of 17.07%, higher than the regulatory minimum of 10% established in the Monetary and Financial Law and 8% in Basel.
The ABA stated that, despite the adverse external outlook, the heritage strength and stability of the financial system have been highlighted by the main risk rating companiesexternal auditors and international organizations, also resulting in the consolidation of relationships with correspondent banks.
“The banking remains a pillar of the macroeconomic stabilitypromoter of development and dynamism through the channeling of resources to the productive sectors of the country and families, thanks to a prudent financial managementdisciplined, forward-thinking and in accordance with the best national and international practices,” indicated the ABA.
Protected in the previous context, the union called to follow the official information and verifiable, in strict accordance with the current legal framework already the principles of prudence that govern the activity of financial intermediation.
“The financial statements of all banking entities are public, transparent, duly supervised by the authorities competent and subject to audit processes internal and external, in accordance with the mandate of the Monetary and Financial Law 183-02 and international regulations, so any analysis or assessment must be based on objective data and an adequate understanding of the functioning of the financial system,” he added.
In this regard, he highlighted the role that the authorities and the banking entities themselves for the publication of their indicators and financial statements audited, demonstrating an open, comprehensive and accessible exercise for all citizens.
Indicators they remain healthy
Likewise, the Association of Multiple Banks guaranteed that the banking Dominican Republic is prepared to face any eventuality without compromising the operational continuity of the entities, as supported by the figures recently revealed by the Central Bank.
He also reiterated that the expired portfolio of financial entities was around 162%, which means that for each peso of expired credit the system has more than one and a half pesos for its coveragereflecting prudent and responsible credit risk management.
The ABA indicated that the banking multiple maintains liquidity levels sufficient to timely meet its obligations, based on the trust of depositors. Likewise, he considered that the profitability indicators present positive and recurring results, supported by financial intermediation and operational efficiency.
He assessed that the credit to private sector non-financial showed balanced growth, with around 72% of loans placed in debtors classified as risk A.
- He also cited that delinquency remained close to 1.9%, with a better performance than the regional average of 2.3%.
“The banking system continues to exhibit high quality of its credit portfolio and a strong and profitable equity situation, which places it in leadership positions compared to other countries in the region, as recently revealed by the Central Bank in his publication Página Abierta” he stated.
