The banking sector called for following official and verifiable information, in strict adherence to the current legal framework and the principles of prudence that govern financial intermediation activities.
SANTO DOMINGO – The Dominican Republic's Multiple Banking Association (ABA) affirmed that the banking sector's solvency levels remain healthy, consistently ranking among the top performers in the region over the years, as evidenced by recent official statistics. In this regard, the ABA highlighted the financial sector's outstanding solvency ratio of 17.07%, exceeding both the regulatory minimum of 10% established by the Monetary and Financial Law and the 8% required by Basel.
The entity stated that, despite the adverse external outlook, the financial strength and stability of the financial system have been highlighted by the main risk rating agencies, external auditors and international organizations, resulting, in addition, in the consolidation of relationships with correspondent banks.
"The banking sector remains a pillar of macroeconomic stability, a driver of development and dynamism through the channeling of resources to the country's productive sectors and families, thanks to prudent, disciplined, forward-thinking financial management in accordance with the best national and international practices," he said.
Based on the above context, the association called for following official and verifiable information, in strict adherence to the current legal framework and the principles of prudence that govern financial intermediation activity.
"The financial statements of all banking entities are public, transparent, duly supervised by the competent authorities and subject to internal and external audit processes, in accordance with the mandate of the Monetary and Financial Law 183-02 and international regulations, so any analysis or valuation must be based on objective data and an adequate understanding of the functioning of the financial system," he added.
In this regard, he highlighted the role that the authorities and the banking entities themselves have played in publishing their audited indicators and financial statements, demonstrating an open, honest and accessible process for all citizens.
Indicators remain healthy
Likewise, the Association of Multiple Banks guaranteed that the Dominican banking sector is prepared to face any eventuality without compromising the operational continuity of the entities, as supported by the figures recently revealed by the Central Bank.
He also reiterated that the non-performing loan portfolio of financial institutions stood at around 162%, which means that for every peso of overdue credit the system has more than one and a half pesos available to cover it, reflecting a prudent and responsible management of credit risk.
The ABA indicated that commercial banks maintain sufficient liquidity levels to meet their obligations promptly, based on depositor confidence. It also noted that profitability indicators show positive and recurring results, supported by financial intermediation and operational efficiency.
He noted that credit to the non-financial private sector showed balanced growth, with around 72% of loans placed on borrowers classified as risk A. He also cited that delinquency remained close to 1.9%, performing better than the regional average of 2.3%.
The banking system continues to exhibit high-quality credit portfolios and a strong and profitable equity position, placing it in leading positions compared to other countries in the region, as recently revealed by the Central Bank in its publication "Open Page," he stated.
