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Bankers assure that bank credit has been a vital factor for the economic recovery in 2021

Bank financing, under the protection of monetary stimuli of liquidity around 5% of GDP, was one of the determining factors to promote the economic recovery of the productive sectors in the country during 2021, said the Association of Banks of the Dominican Republic ( ABA), when passing balance to the year that ends.

The ABA indicated that credit to the private sector in national currency has continued to grow at an annual rate close to 10%, in all credit segments (households and companies), in a context of notable improvement in the profile and quality of the portfolio of loans.

In a press document, he highlighted that in 2021 the recovery of mortgage credit accelerated, a segment that is directly related to construction, associated with greater economic activity and employment.

Similarly, the ABA pointed out that, as of November 2021, the credit portfolio for MSMEs increased by more than RD $ 16 billion compared to December 2020, already representing 44% of the commercial portfolio.

To all this, there has been added an environment of low interest rates, whose weighted average active rate registered a reduction of 340 basis points since March 2020, the date on which the pandemic began in the country, the union explained.

The ABA indicated that the expansion of credit has occurred within the framework of adequate managerial management that results in liquid, efficient banks, with good quality of assets, solvent and profitable, according to the statistics of local authorities and international organizations. , evidencing a sustained patrimonial strengthening.

In short, it is about a bank with better access to credit and positioning in the face of correspondents and international risk rating firms, the ABA pointed out.

Regional context

The Association of Multiple Banks highlighted that the optimal results in the performance indicators place Dominican banking in a leadership position in Latin America and is also reflected in greater competitiveness in global markets.

He stated that the banks that operate in the Dominican Republic are at the forefront of the banks in the region in terms of liquidity, solvency ratio, profitability of assets and are among the countries with the lowest levels of non-performing portfolio, according to figures from the Superintendency Bank and the World Economic Forum (WEF).

The ABA also highlighted that, between 2008 and 2019, the Dominican financial system climbed 36 positions in the World Competitiveness Ranking of the World Economic Forum, which shows the efficient performance of the national bank.

Challenges of the future

With a view to taking advantage of business opportunities, fulfilling its social responsibility to society and contributing to a more inclusive and sustainable economy, multiple banking faces different challenges for the upcoming 2022, the ABA indicated.

The union explained that multiple banking will continue with the acceleration of its digital transformation, technological and process optimization, with financial innovation and will continue to support MSMEs. He also expressed that he will continue his promotion of green finance, education and financial inclusion, cybersecurity, gender equality and contributing to the reduction of the housing deficit, among other vital aspects for the economic and integral development of the nation.

Multiple banks will direct actions to strengthen the prevention of money laundering and financing of terrorism, by strengthening inter-institutional relations with the competent authorities, with other obligated subjects for the purpose of collaboration and training in regulation and best practices, he said. .

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