SANTO DOMINGO. – Executives from the Dominican Republic's Association of Multiple Banks (ABA) met with a mission from the International Monetary Fund (IMF), which was interested in learning about their impressions of the banking sector's current situation and the association's projects with the potential for a positive impact on financial users, small and medium-sized enterprises, and other sectors.
The president of the ABA, Rosanna Ruiz, highlighted the strength exhibited by multiple banking, which constitutes one of the fundamental pillars of macroeconomic stability, and expressed confidence in the economic recovery heading into 2024, before the organization's representatives, Manuel Rosales, Pamela Madrid, and Diego Calderón.
Julio Lozano, director of Economic Studies at the ABA, explained that at the close of the third quarter of 2023, the national banking sector shows growth, with indicators that reflect a high quality of its assets and a solid equity position, results that are supported by the confidence of the public and investors.
He stated that proper risk management has allowed the expansion of bank credit to be supported by a solid financial position and pointed out that, by September 2023, total bank assets reached RD$2.9 trillion, which is equivalent to an annual expansion of 13.9%.
He also explained that multiple banks have helped channel approximately RD$126 billion provided by the monetary authorities, resources that have gone directly to support households and productive activities, contributing decisively to raising the growth forecasts of the Dominican economy.
In line with the reduction of the Monetary Policy Rate, Lozano pointed out that a reduction of 200 basis points was observed in the weighted average active rate of multiple banks (TAPP) and an annual expansion of credit to the private sector in national currency that has been boosted from 11.9% in May to 18.4% in September 2023.
For its part, the IMF delegation was interested in learning details of initiatives promoted by the ABA in favor of financial inclusion, including the Code to Finance Women Entrepreneurs and pilot projects aimed at the development of micro, small and medium-sized enterprises (MSMEs), low-cost housing, among others.
The president of the Banking Association highlighted the actions taken by the sector in the area of money laundering prevention, an aspect in which it promotes the creation of a unified list of politically exposed persons (PEPs) that can be consulted by the financial sector, with the appropriate measures to safeguard the protection of personal data.
Similarly, Ruiz highlighted the banking sector's significant investments in technology and cybersecurity, as well as prevention efforts aimed at users, including the Yo Navego Seguro platform and the No Te Dejes Pescar guidance campaign.
Also present at the meeting were Manuel González, Junil Fermín and Pamela Castillo, Technical, Legal and Communications Directors, respectively, as well as managers from various areas, the ABA reported in a press release.
