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Association of Banks qualifies 2023 as a challenging year

Asociación de Bancos califica el 2023 como un año retador

When passing balance to the year that ends, the Association of Multiple Banks of the Dominican Republic (ABA) assessed the effectiveness of monetary and fiscal policies, as well as the contribution of bank credit to the revitalization of the economy and considered that 2023 will be a challenging year due to the international situation, although with expectations that progress will be made locally in economic and social terms.

The ABA recalled that in the year An adverse and complex international outlook has prevailed in 2022 and, despite this, the Dominican economy will end with a growth around 5% and one inflation close to 7%.

He stated that both extraordinary results are due to the effectiveness of monetary and fiscal policies and the dynamism that led to bank credit between the productive sectors and households.

In a press document, the union highlighted that Commercial banks reduced the financial intermediation margin from 7.8% in November 2021 to 3.6% in November 2022, by increasing more intensely deposit rates, that is, the rate paid to depositors. He pointed out that, in a more gradual manner and with the purpose of mitigating greater effects on debtors, active rates were increased after the increases in the monetary policy rate, measures aimed at counteracting inflationary pressures.

He specified that the multi-bank performance indicators In the year ending, they continue to occupy top positions in the region, in terms of liquidity, profitability, equity strengthening, efficiency and quality of assets, with a delinquency rate of barely 0.89.

He highlighted that, from October 2019 to October 2022, the Multiple banking net worth accumulates a growth of 50%, about RD$90,000 millionof which substantial investments have been made in technology, cybersecurity, money laundering prevention and other areas, with the purpose of advancing towards an increasingly digital, inclusive and sustainable model.

The entity, which brings together multiple banks in the country, stated that for the 2023 envisions a year of fewer monetary restrictions, which will facilitate a favorable scenario for resuming the path of sustained growth with macroeconomic stability”.

“We are committed to a more efficient bank and aimed at continuing the path of greater proximity and social responsibility, mitigating risks with the implementation of comprehensive management and a look at the positive experience of those already banked and those that we will achieve with strategic synergies,” he said. the ABA.

The union estimated that 2023 will be a challenging year due to the global environment, but “with local expectations that we will be able to advance in the consolidation of economic and social achievementswith effort and public-private vision to promote pending reforms and maximize our comparative and competitive advantages”.

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