SANTO DOMINGO – The Dominican Republic's banking system ended 2025 with high levels of strength, stability, and resilience, even in an international environment characterized by economic and geopolitical uncertainty. This is according to a sector analysis published by the Dominican Republic's Association of Multiple Banks (ABA), prepared by its Economic Studies Department.
The association indicated that multiple banks maintained high liquidity levels, a high-quality loan portfolio, adequate provisions, and profitability exceeding that of their peers in Latin America. According to the association, this performance consolidates the system's regional leadership and strengthens its capacity to support productive activity by stimulating credit.
Assets and portfolio: growth with a productive focus
According to the analysis, the assets of multiple banks grew at an average annual rate of 9.8%, an expansion that, although moderate compared to the 12.7% recorded in 2024, demonstrates the continued growth of the financial system.
The loan portfolio represented 54% of total assets and grew at an annual rate of 9.7%, strategically focused on productive activities and housing finance. The ABA explained that this approach was accompanied by a more cautious stance in segments considered higher risk, such as consumer lending.
In that adverse global context and economic slowdown, the banking system, according to the association, showed adaptability and prudence, prioritizing comprehensive risk management, asset quality and the protection of public deposits.
Interest rates and credit respond to monetary policy
The Banking Association noted that both interest rates and private credit in national currency responded positively to the monetary measures implemented during the second half of 2025.
Specifically, interest rates fell by 150 basis points between June and December, from 14.8% to 13.3%, a behavior that the analysis directly links to the monetary easing applied during that period.
Public confidence drives acquisitions
Public deposits grew by 11.7% as of December 2025, exceeding the rate observed in 2024, when the increase was 10.5%. This performance was mainly driven by the improved performance of savings and time deposits.
“This behavior reflects public confidence in the strength and stability of the banking system, and strengthens the funding base of institutions to continue supporting the economy,” the ABA said in a press release.
Economic outlook and financial conditions
The association noted that the economic outlook shows a gradual improvement. Although pockets of uncertainty persist globally, a more favorable external environment is expected, accompanied by better financial conditions and a recovery in Dominican economic growth.
According to the ABA, this scenario —along with a more flexible monetary policy— creates favorable conditions for greater credit dynamism and positive performance in the banking sector.
Source: Sectoral analysis of the Association of Multiple Banks of the Dominican Republic (ABA), prepared by the Directorate of Economic Studies and disseminated through an institutional press document.
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