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January 4, 2025
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Growing banking sector of the economy

Growing banking sector of the economy

The Association of Banks Multiples of the Dominican Republic (ABA) highlighted that during the past year, the sector banking national was fundamental to promote the growth economic of 5.1% of the country, converting savings into credits intended to finance household projects and productive sectors.

In a press release, the union highlighted statistics from the Central Bank of the Dominican Republic (BCRD) in which it recalled the impact of the loans on the growth economic in the period January-November 2024, with an interannual inflation of only 3.18% for the same period.

Likewise, the ABA highlighted the strength of the financial system: “In the midst of an increasingly uncertain global environment, the economy dominican shows a resilience recognized by national and international analysts”.

The association highlighted the proactive role of a Policy Monetary more flexible in the last semester, which included reductions of 275 basis points in the monetary policy rate (MPR), provision of liquidity for 175,000 million pesos and other complementary measures.

“These stimuli contributed to the growth of the briefcase gross of credit private sector, which went from 1.56 trillion pesos in November 2023 to 1.80 trillion in November 2024, reflecting a growth annual increase of 15.8%,” the union stated banking.

Of the increase of more than 246,000 million pesos, 59% (145,000 million) benefited the sector businesswhile the remaining 41% (101,000 million) went to households.

Deposits and other banking indicators

Infographic
Facade of the ABA reception. (EXTERNAL SOURCE)

The Association of Banks considered that the growth in the captures reflects the confidence of the savers in the system banking Dominican.

The captures They totaled approximately 2.6 trillion pesos in November 2024, with an increase of 10.9% compared to the same month of 2023, equivalent to 253,495 million.

It was highlighted that the indicators of performance of the banking dominican show adequate comprehensive risk management, corresponding to the responsible management of public resources.

As of November 2024, the liquid assets ratio indicated a situation of liquidity adequate, the delinquency rate was the lowest in Latin America, and the coverage rate was above 100, it says in the note.

The index of solvency exceeded the regulatory requirement, and the profitability of banks showed leadership in the Latin American region.

Outlook for 2025

“By 2025, it is anticipated that the economy dominican continue to grow close to its potential, in an environment of controlled inflation that allows the Central Bank to continue normalizing its monetary policy,” noted the ABA.

More long term, and in line with the ABA strategic plan, “the sector banking will continue working on projects that contribute to building a sector formal financial institution that is larger, more inclusive, with a technical human resource and adopting the best practices in environmental sustainability,” the union said.

Dominican Republic’s leading newspaper focused on general news and innovative journalism.

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