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November 5, 2025
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Why is banking growing more than the economy?

Why is banking growing more than the economy?

Although the dominican economy it barely grew 2.2% from January to September 2025, the financial services became the sector with the greatest dynamism, with an expansion of 7.4%, according to data from the Central Bank of the Dominican Republic (BCRD).

The main explanation is in the flexibility measures monetary policy adopted by the Central Bank and the soundness of the financial systemwhich has maintained the ability to channel credit to companies and households in an environment of low inflation and economic slowdown.

The context

He governor of the BCRD, Hector Valdez Albizurecalled that in 2025 the world economy has been marked by geopolitical tensions, more restrictive than expected external financial conditions and changes in tariff, immigration, fiscal and regulatory policies.

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Even so, the country has maintained price stability: inflation stood at 3.76% year-on-year in September, within the target range of 4% ± 1%.

This context allowed Central Bank reduce your monetary policy rate at 5.50% annually and launch a liquidity program for 81,000 million pesos to boost credit.

According to the Association of Multiple Banks (ABA), the measures adopted by the Monetary Board promoted the recovery of private creditwhich grew 8.7% in September, compared to the 6.8% registered in March.

He credit growth he concentrated on the commercial financing to companies now mortgage loans.

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