SANTO DOMINGO.– During the current year, multiple banks have continued to hold top positions regionally in all their indicators and maintain their commitment to innovation, digital transformation, sustainability, inclusion and best practices, executives of the Association of Multiple Banks of the Dominican Republic told the International Monetary Fund (IMF) mission currently in the country.
Rosanna Ruiz, accompanied by other executives from the association, received Marco Barzanti and Manuel Rosales Torres, delegates from the IMF, who were interested in learning details of the performance of the banking sector, and its perspectives on the challenges and evolution of the national financial system, as part of the annual visit within the framework of Article IV of the Articles of Agreement of the international organization.
Ruiz stated that the multiple banking sector holds a robust position in terms of equity, with high levels of capitalization, net worth, solvency, and assets with adequate liquidity. "Practically 60 percent of profits are being reinvested as voluntary reserves within equity accounts, with a surplus seven times greater than required by the Monetary and Financial Law; furthermore, we have provisions 2.5 times higher than the levels required for estimated losses," he specified.
As added value, he highlighted the significant efforts banks are making in preventing money laundering, promoting cybersecurity, and fostering sustainability. "Our sector's commitment also encompasses the digital economy, as a way to encourage inclusion and enhance financial services," he added. He pointed out that the initiatives promoted by the banking sector, such as Digital Signatures, the Green Protocol, and the We Finance Code, among others, are aligned with the sector's vision and work policy.
On the other hand, he expressed that the multiple banking sector sees opportunities to foster a deeper and more liquid capital market in the Dominican Republic, which can make the synergy between the financial and securities markets more productive, in order to positively impact the country's economic development.
In response to a concern raised by the International Monetary Fund delegates, Manuel González, Technical Director of the ABA, stated that multiple banks currently comply with the international regulatory standards of Basel II, in a standard or basic way, and that it is advisable to move towards Basel III, within a framework of gradual implementation.
In that regard, he stated that hard work is required to preserve healthy competition in the market and to enable financial institutions to apply these rules, fulfilling their current responsibilities and challenges.
Also participating in the meeting on behalf of the ABA were Julio Lozano, Junil Fermín and Pamela Castillo, directors of Economic Studies, Legal, Communication and Marketing, respectively; as well as managers Alejandro Mercado, Sovieski Naut, Lidia Ureña, Dalma Hernández, Susana Flete and Altagracia Martínez.
