SANTO DOMINGO.-The Dominican Republic's Multiple Banking Association (ABA) highlighted the performance of the banking sector operating in the country, whose financial results at the end of 2024 reflected proper management of depositors' funds and the value of their contribution to economic activity.
The ABA valued the appropriate levels exhibited by multiple banks in terms of liquidity, quality of their loan portfolio, profitability and a capitalization that exceeds the regulatory level, despite the fact that a challenging international environment prevailed during the period.
He reported that, as of December 2024, the assets of multiple banks totaled RD$3.4 trillion. Meanwhile, "deposits, which constitute the raw material of financial intermediation and reflect public confidence in multiple banks, registered a value of RD$2.56 trillion, for an absolute growth of RD$257,342.3 million and 11.2% in percentage terms, compared to December 2023," he added.
The ABA highlighted that these results occurred in the context of economic stability, characterized by 5.0% growth at the end of the year and inflation that ended at 3.4%, the lowest indicator in the last six years, as recently reported by the Central Bank.
Regarding financing, based on official statistics, the association specified that the gross portfolio of private bank credit stood at RD$1.81 trillion in December of last year, which is equivalent to a growth of 13.4% compared to the same month of 2023, an absolute increase of RD$217 billion.
He specified that 54% of that increase went to productive sectors that used it for working capital or investments in machinery, equipment, or infrastructure. Meanwhile, the remaining 46% generated well-being in households that used it for home renovations, vehicle purchases, the purchase of household appliances, and other purposes.
An analysis by the ABA, which uses statistics from the Superintendency of Banks as a reference, specified that the delinquency rate stood at just 1.4% as of December 2024. It indicated that the banking sector maintains excellent solvency levels, with the rate ending the period at 15.9%, thus exceeding the 10% required by law, which demonstrates a healthy, robust financial system supported by its own equity resources.
On the other hand, the ABA reported that the reductions in the monetary policy rate (MPR) implemented by the Central Bank are already being reflected in market conditions, whose weighted average lending rate (WALR) was reduced by approximately 100 basis points between November and December 2024.
Finally, the banking sector expressed its interest in continuing to work to ensure that the sector remains an efficient channel for the transmission of monetary policy and continues to efficiently perform its role as a financial intermediary, supporting economic activity, employment, and, therefore, the well-being of citizens.
