The Multiple Banks Association of the Dominican Republic (ABA) reiterated today that, as reported by the Monetary Board, “the multiple banks of the country have no correspondent business relationship with Silicon Valley Bank and the SignatureBank“, entities that recently closed operations in the United States.
In a press release, he recalled that the country “managed to get out of the global crisis of 2008thanks to the regulations implemented since the first decade of this century in the financial system and the continuous strengthening of commercial banks in capitalization and comprehensive risk management and innovation”.
The ABA pondered that multiple banks and the regulatory and supervisory authorities of the financial system “maintain a constant and real-time communicationin order to monitor the operation of the sector and maintain a proactive attitude” in the face of any situation that could affect the Dominican Republic.
“We reaffirm our commitment to the well-earned trust that users deposit in the banking sector, by placing its resources in their hands so that, in turn, we continue to make multiple investments and facilitate credits to boost the productive sectors and well-being of Dominican families,” the union said.
The association stressed that one of the foundations of Dominican economic stability “is the resilience and robustness of the financial system indicatorswhich occupies top positions in the region in terms of liquidity, profitability, low delinquency and solvency”.
Reaffirms solvency
The ABA noted that the patrimonial solvency multiple banks (indicator that measures the degree of capital robustness), stood at 15.3% as of December 2022, well above the 10% regulatory requirement.
He indicated that the portfolio delinquencymeasured through the delinquency rate, stood at 1.0%, and the coverage ratio at 427.8 as of January of this year, “indicators that reflect a healthy state of bank assets in the Dominican Republic.”
