The Banking Association highlighted the economic boost that bank financing provides to various national productive sectors and reaffirmed its interest in continuing to support the growth of developing areas in the national economy.
SANTO DOMINGO.-The Dominican Republic's Association of Multiple Banks (ABA) reported yesterday that, as of October 2023, some 85,000 mortgage loans had been disbursed, totaling RD$220 billion, for the construction and renovation of housing units throughout the country.
The association expressed its confidence that this trend will continue, based on the incentives offered by the State in coordination with the private sector.
The ABA said in a press release that the credit granted by multiple banks to the private sector is distributed in a balanced way between companies and households, which concentrate 57% and 43% of that portfolio, respectively.
In the press release, the banking association also referred to the financing granted to companies, especially those aimed at areas that drive the country's economic growth, including trade, manufacturing, tourism and construction, sectors that account for 60% of this type of credit, it pointed out.
Similarly, he stated that banks have been incorporating SMEs into their business model in recent years, which has allowed these companies to gain market share, representing 40% of the commercial loan portfolio balance as of October.
Regarding the export sector, the entity that brings together the country's multiple banks reported that credit to this sector increased by more than RD$27 billion between 2014 and 2023, which implied significant support for the development of this foreign exchange-generating sector, which includes small, medium and large companies, with national capital and free zones.
She stated that another relevant segment has been financing for women, totaling 2.3 million loans, which they mostly use in the home or in the development of entrepreneurial ventures.
In this regard, he specified that the balance of the female loan portfolio stood at RD$283,600 million as of August 2023, which represents an increase of RD$193,744 million compared to 2014 and a growth 17% faster than that of male loans.
Regarding green credit, a category that contributes to the transition of Dominican companies towards environmentally sustainable practices, the association reported that between 2017 and 2022 its balance increased by more than RD$12 billion, growing 541% faster than the commercial portfolio.
Finally, the ABA reaffirmed the interest of multiple banks in continuing to support productive sectors and households through financing, while also serving as an efficient channel for transmitting the monetary policy of the authorities in order to reduce the price of money and boost the economy for the benefit of the national community.
