At the end of September 2022, the total assets of the financial system amounted to RD$2.94 trillion, which represents 54.6% of the gross domestic product (GDP), a nominal year-on-year growth of 12.1%.
According to the Quarterly Report on the Performance of the Financial System June-September 2022, published by the Superintendency of Banks (SB), the Dominican financial system remains stable, resilient and with the capacity to absorb losses, presenting adequate levels of profitability, solvency and liquidity. .
This report states that the solvency index of the system reached 17.2%, higher by 7.2 percentage points than the minimum requirement established in the Monetary and Financial Law No. 183-02. It adds that 81.4% of the technical assets of the system correspond to primary capital, which is the one with the greatest capacity to absorb losses. “This means that for every five pesos of regulatory capital exhibited by the financial system, four pesos constitute capital of the highest quality and loss absorption capacity,” the report indicates.
It is worth noting that the technical equity presents an upward trend, with an increase of 6.3% compared to the previous quarter, reaching RD$319 billion.
Deposits, which include savings and current accounts, and investment certificates, reached RD$2.26 trillion (41.9% of GDP), experiencing an interannual growth of 11.3%.
Debtors recover
According to the report, the delinquency rate of the financial system was located at 0.96%, remaining at historically low levels. While the stressed delinquency of the system continues its decrease reaching 7.96% at the end of September.
The stressed delinquency indicator is used to provide a more complete view of the EIF’s credit risk management process, as well as the situation of its loan portfolio.