SANTO DOMINGO– The Dominican Republic's Multiple Banking Association (ABA) positively assessed the Superintendency of Banks' decision to authorize the opening of simplified savings accounts exclusively for micro, small and medium-sized enterprises (MSMEs), considering it a significant step forward in facilitating this segment's access to the formal financial system and its business development.
The ABA highlighted the importance of this sector to the national economy and reported that there are currently 384,043 micro, small, and medium-sized enterprises (MSMEs) as sole users of the financial system. Furthermore, it added that this sector holds a loan portfolio of RD$535,741 million, representing 43.1% of the total business loan portfolio, according to official data as of July of this year.
He explained that the Basic Savings Account for SMEs becomes an agile, less expensive and simpler instrument, designed especially for companies that still operate informally and that, in many cases, resort to personal financing or unregulated lenders.
"With this system, micro, small, and medium-sized enterprises (MSMEs) can have separate business assets from their personal assets, which provides greater legal security. For example, if a lawsuit is filed against the company, the personal assets of the owners are not at risk, and vice versa," the Association emphasized.
On the financial front, he explained that simplified accounts allow banks to understand the income flows of SMEs, which expands their chances of accessing business credit with more favorable conditions.
The ABA emphasized that this provision also acts as an incentive for formalization, since micro, small, and medium-sized enterprises (MSMEs) will need to have a National Taxpayer Registry (RNC) and meet simplified requirements to open these types of accounts. This creates a gateway to other financial products, while also promoting business organization and sustainability, the ABA stated.
“We support this initiative, which was one of the priority actions of the Financial Committee of the National Strategy Goal RD 2036, coordinated by this association, in the interest of reducing the high levels of informality in the Dominican economy. MSMEs represent more than 95% of the country's business sector, and micro-enterprises in particular will be the most benefited by this instrument,” he stated.
By supporting this provision, the multiple banking sector reaffirms its commitment to assisting micro, small, and medium-sized enterprises (MSMEs) in their formalization process, strengthening, and access to new growth opportunities, the Banking Association stated.
