The capital increase will significantly strengthen the bank and translate into an improvement in the services offered through investments in technology.
The Banco de Reservas reported that, under the current administration, it has achieved the largest capital increase in its 83-year history.
This milestone highlights a remarkable growth from 10 billion pesos in 2020 to 39 billion in January 2022 and, most recently, to 76 billion in August 2024.
This increase, which represents an extraordinary expansion of 660% from the initial 10 billion, has been possible thanks to the recent modification of Law Number 13-24, which updates the Organic Law of the Bank, as well as the capitalization of the profits generated in recent years.
This amendment will significantly expand the institution’s capitalisation capabilities and strengthen its financial position.
The capital increase will significantly strengthen the institution, resulting in improved services through investments in technology and operations, greater financial stability and security, as well as an expansion in the benefits and programs available to citizens.
In addition, it will allow greater support for community development initiatives and public interest projects, benefiting all Dominicans.
Commenting on this move, Banco de Reservas CEO Samuel Pereyra said: “The exponential growth of our capital is a testament to the hard work and dedication of our team, as well as the importance of the recent amendment to the Law Number 13-24”.
He said that “this update of the Bank’s Organic Law has been fundamental in allowing us to strengthen our capabilities and expand our leadership.”
Pereyra added that the financial institution “is committed to the continued development and improvement of its financial services for the community. This increase not only strengthens the Bank’s operational capacity, but also reflects our mission to provide a positive impact in the lives of all Dominicans.”
It is recalled that the Executive Branch promulgated Law 13-24 on the new status of the Banco del Reservas, through which the entity was renamed a multiple bank, without tax exemptions, privileges or limitations.
This is the first time in 61 years that a substantial change has been made to the regulations governing Banreservas.
The regulation placed Banreservas on an equal footing with the other institutions that make up the financial system, with the State remaining the sole shareholder.
The legislation established that Banreservas will have a capital of 39,000 million, which may be increased or decreased by resolution of the Board of Directors, in accordance with the provisions of the Monetary and Financial Law.
This means that the banking institution has the power to make decisions related to its capital without requiring the approval of Congress, as long as such increases are made from its equity reserves.
The new law eliminated the general tax exemption provided to the Reserve Bank in the previous law, putting it on equal competitive conditions with its peers in the Dominican financial system.
In the new legislation 13-24, the bank’s retirement and pension plan, as well as the acquired rights and conditions recognized to current collaborators, were maintained unchanged.
As of last May, Banresersas had 33.31% of the total assets of the financial system, with a total of RD$1,214,226.53 million, according to statistics from the Superintendency of Banks.
