Deposits are the main source of resources used by multiple banks to carry out their operations
Between 2021 and 2022, deposits or savings deposits in multiple banks have shown a stable behavior, with some changes in their composition, reflecting changes in the preferences of savers towards deposits with longer maturities and higher profitability, reported the Association of Multiple Banks of the Dominican Republic (ABA).
The ABA explained that deposits are the main source of resources used by multiple banks to carry out their financial intermediation operations, among them, the most important, the financing of credit for households and companies.
In this sense, during the first nine months of 2022, total deposits grew at an annual average of 13.9%, a rate quite similar to that observed during the same period in 2021 (15.4%), the ABA explained, taking statistics from the Superintendency of Banks as reference.
“This means that, despite the global economic situation, bank deposits have shown stable and resilient behaviour”, valued the guild in a press document.
We invite you to read: What should you have pending for good credit card management?
Similarly, he recalled that the deposits are made up of all types of deposits available in banks: demand deposits, savings deposits, time deposits, securities (certificates) held by the public and interbank deposits. Together, these savings instruments represent approximately 85% of banks’ total liabilities, he said.
“Beyond the stability in its growth rate, it is important to highlight some changes that are observed in terms of the composition of savings,” stated the ABA. In this sense, he stated that, as of August 2022, long-term deposits increased 64.6% compared to the same month of 2021.
The ABA commented that this last data reveals a greater preference of savers for time deposits, which are characterized by having a longer maturity period and higher yields, compared to demand deposits or savings deposits.
