Data from the first half of the year reveals that Dominican banks are experiencing an acceleration in their private sector lending portfolio and public deposits, while maintaining positive results in their prudential indicators
SANTO DOMINGO.- The Dominican Republic's Multiple Banking Association (ABA) stated that credit to the private sector registered a year-on-year growth of 9.1% at the end of June of this year, a performance that confirms the role of bank financing as one of the main drivers of the recovery and growth of the Dominican economy in an international context marked by uncertainty and volatility.
Through an analysis by its Directorate of Economic and Banking Studies, the ABA reported that the evolution of the portfolio shows an acceleration with respect to the accumulated growth of 7.4% registered in December 2025, which represents an additional injection of more than RD$80 billion between January and June 2026, equivalent to 1.0% of the gross domestic product (GDP).
He also highlighted that the Central Bank projects that credit to the private sector in national currency will continue to accelerate gradually until reaching a growth of 10.5% by the end of this year, which would raise the expansion of financing to RD$149,818 million, equivalent to 1.9% of GDP.
"This increased dynamism has been concentrated mainly in the commercial and mortgage segments, which shows that the allocation of resources continues to support the activities that lead the expansion of the economy, such as construction, tourism, transport and private investment, thus strengthening the country's ability to sustain its growth in an uncertain international environment," the ABA said.
The analysis also highlights that, in parallel with credit growth, public deposits accelerated their rate of expansion, rising from 9.2% in December 2025 to 14.9% in June of this year. In absolute terms, during the first half of 2026, the deposit base available to financial intermediaries increased by RD$257,124 million, equivalent to 3.3% of GDP.
In this regard, the Banking Association considered this behavior as a sign of the public's continued confidence in the financial system and, at the same time, as a stable source of resources that allows banks to continue financing households and productive sectors under competitive conditions.
Performance of the main prudential indicators
Referring to the main prudential indicators, the ABA specified that the statistics from the Superintendency of Banks show that the system maintains a liquid asset ratio above 40%; a stable delinquency rate below 2.0%; a non-performing loan coverage close to 180%, well above the minimum reference level; a solvency ratio of 17.3%, significantly higher than the regulatory requirement of 10%; and levels of return on assets (2.4%) and equity (20.3%) which, although they have moderated, continue to be among the highest in Latin America, where the regional averages are 2.0% and 14.3%, respectively.
Regarding this moderation in profitability, the entity that brings together the country's multiple banks explained that it responds to a prudent strategy adopted by financial institutions in the face of increased global uncertainty.
"In a context of heightened external risks, banks have prioritized strengthening their liquidity and capital levels, even if it means sacrificing some profitability. This decision increases the system's capacity to absorb potential shocks and continue supporting the financing of the Dominican economy," he noted.
The analysis also noted that the Dominican economy grew by 4.5% during the first half of 2026 and that the Central Bank projects an expansion of around 4.0% by the end of the year. "If this projection materializes, it would represent a recovery from the 2.1% growth observed in 2025 and would keep the country above the estimated average for Latin America, which is around 2.0%," it added.
For the ABA, the strength of the main financial indicators, together with the dynamism of credit destined for productive activities, has been a determining factor in preserving the resilience of the Dominican economy in the face of an international scenario characterized by geopolitical tensions, volatility in the markets and growing challenges for world trade.
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