Between September 2020 and September 2022, the assets of banks increased by approximately RD$70 billion, an amount that shows the strengthening of the sector in the face of future risks, said the Association of Multiple Banks of the Dominican Republic (ABA) during a mission visit of the International Monetary Fund (IMF) to the guild’s headquarters.
The president of the ABA, Rosanna Ruiz, received the delegation of the international organization made up of its executives Mario Mansilla, Frank Fuentes and Dirk Jan Grolleman, to whom she explained that the banking indicators reflect a sector with liquidity, solvency and wealth strengthening.
Similarly, he explained that the equity solvency currently stood at 16.04% as of August of the current year, well above the 10% regulatory requirement, while the delinquency of the portfolio is at historical lows of 0.8% as of September 2022 , reflecting a high quality of banking assets.
At the same time, it indicated that the coverage index of this non-performing portfolio stands at 561.4, its historical maximum, which indicates that these provisions fully cover the possible losses due to unrecoverable loans due.
On behalf of the IMF, Mario Mansilla conveyed a message of calm for the Dominican Republic. He expressed that “in general, the message for the Dominican economy is quite
positive, but with challenges to come” and cited among these the global volatility, the panorama generated by the war and the behavior of interest rates.
During the meeting, the IMF executives were interested in the different projects and initiatives promoted by multiple banks in terms of legislative reforms, cybersecurity, technology, financing for different sectors, human capital formation, training, education and financial inclusion, among others. others.
In offering details of these aspects, the president of the ABA highlighted the need to approve important economic regulation initiatives in the National Congress, in order to facilitate financing for small and medium-sized companies.
Ruiz specified that these pieces of legislation are: the draft Law on Reciprocal Guarantee Companies, on Factoring Contract, discount, commercial assignment of credit rights and negotiable invoices and Leasing. In the same order, he considered that the implementation of the Movable Guarantees Law, scheduled for the year 2023, is necessary.
At the meeting, he also elaborated on union initiatives aimed at citizens, such as Yo Navigo Seguro (www.yonavegoseguro.com.do), dedicated to cybersecurity prevention and the User Portal, where information is provided on the rights and duties of bank customers.
At the meeting with the IMF mission, Ruiz was accompanied by Manuel González, Technical Director; Junil Fermín, Legal Director; Pamela Castillo, Director of Communications; Julio Lozano, director of Economic Studies; Jorge Rodríguez, director of Technology and Projects and other executives of the union.
