The Central Bank of the Dominican Republic (BCRD) put into circulation the financial stability reports to September 2024 and closing 2023, which examine the recent development and perspectives of the financial sector of the Dominican economy by 2025, in accordance with the provisions of The third resolution of the Monetary Board dated January 30, 2025.
The document explains that the results of the exercises suggest that the delinquency index would be around 1.5 % in 2025, staying stable around this value in 2026. In turn, even in very adverse economic scenarios, the delinquency index would show rapid normalization and the solvency indicator would be sustained above the minimum level of 10 % in accordance with the provisions of Law No. 183-02 Monetary and financial, reflecting the resilience of the Dominican economy as a whole and the strength of the financial system.
He added that “the stress tests carried out to financial intermediation entities reveal that most entities have appropriate levels of patrimonial sufficiency to absorb possible economic losses that can be derived from the occurrence of different credit risk scenarios, type of type of type of change, interest and liquidity rates, so there is no evidence of significant vulnerabilities that can lead to the dissolution of financial entities of systemic importance in The Dominican economy ”.
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For their part, liquidity test exercises show that financial intermediation entities maintain sufficient liquid assets to face sustained withdrawals from enforceable liabilities. In this regard, it should be noted that during the course of 2024, the Monetary Board and the Central Bank adopted a series of measures to manage
Under the previous context, the report adds that financial intermediation entities, the main segment of the financial market, exhibited an annual growth of their 10.3 % assets in 2024, to reach 51.7 % of the gross domestic product (GDP), driven by the Credit dynamism, which showed an increase of 12.2 % in that same year. The growth described in assets was accompanied by a healthy expansion of the net worth of intermediation entities, in the order of 14.8 % per year, to reach 6.3 % of GDP in 2024. As a consequence of the above, the greatest confidence of the public In the stability of the financial system, it was reflected in the growth of liabilities, which reached 45.4 % of GDP, as a result of the increase in public deposits by 9.4 % at the end of 2024.
On the other hand, in these publications the actions of the Monetary and Financial Administration are collected in the field of the continuous strengthening of the regulatory framework, in accordance with the best international practices and the promotion of financial inclusion. In that sense, the integral modification of the Bank Subagent Regulations is highlighted, where the figure of the Bank Subagents Administrator was incorporated, through the digital and mobile operational modalities. The instruction for the application of the user protection regulations of financial products and services, among others of importance in financial regulation.
By 2025, the study shows that the main results of financial stability reports indicate that there are no evidence of risk factors and financial vulnerabilities that may affect the stability of the financial system of the Dominican economy.
