Data for the first half of the year show that Dominican banks expanded their financing portfolio to the private sector while public deposits also increased.<\/p>\n\n\n\n
The ABA said the portfolio\u2019s evolution reflects an acceleration in accumulated growth.<\/p>\n\n\n\n
Credit to the private sector registered a year-on-year growth of 9.1% at the end of June of this year, a performance that confirms the role of bank financing as one of the main driving forces of recovery and growth of the Dominican economy in an international context marked by uncertainty and volatility, said the Association of Multiple Banks of the Dominican Republic (ABA).<\/p>\n\n\n\n
In an analysis by its Directorate of Economic and Banking Studies, the ABA reported that the portfolio’s evolution shows a 7.4% acceleration in accumulated growth recorded in December 2025, an additional injection of more than RD$80,000 million between January and June 2026, equivalent to 1.0% of the gross domestic product (GDP).<\/p>\n\n\n\n
The report also highlighted that the Central Bank foresees that credit to the private sector in national currency will continue to accelerate gradually until reaching a 10.5% growth by the end of this year, which would raise the expansion of financing to RD$149,818 million, equivalent to 1.9% of GDP.<\/p>\n\n\n\n
“This vigor has been mainly concentrated in the commercial and mortgage segments, which shows that the allocation of resources continues to support the activities that lead the expansion of the economy, such as construction, tourism, transportation and private investment, thus strengthening the country’s capacity to sustain its growth in an uncertain international environment,” the ABA said.<\/p>\n\n\n\n
The analysis also highlights that, in parallel to the growth of credit, public deposits accelerated their rate of expansion, going from 9.2% in December 2025 to 14.9% in June of this year. In absolute terms, the deposit base available to financial intermediation entities increased by RD$257,124 million, equivalent to 3.3% of GDP, during the first half of 2026.<\/p>\n\n\n\n
Therefore, the Association of Banks view this performance as a sign of the ongoing confidence the public has in the financial system as well as a stable source of resources that allows banks to continue financing households and productive sectors under competitive conditions.<\/p>\n\n\n\n
Performance of key prudential indicators<\/strong><\/p>\n\n\n\n Referring to the main prudential indicators, the ABA specified that statistics from the Superintendency of Banks show that the system maintains a liquid asset ratio of more than 40%; a stable delinquency rate below 2.0%; non-performing loan coverage of close to 180%, well above the minimum benchmark; a solvency ratio of 17.3%, significantly higher than the regulatory requirement of 10%; and levels of return on assets (2.4%) and equity (20.3%) which, although moderated, continue to be among the highest in Latin America, where regional averages stand at 2.0% and 14.3%, respectively.<\/p>\n\n\n\n As for the moderation in profitability, ABA, which brings together the country’s multiple banks, explained that it responds to a prudent strategy adopted by financial institutions in the face of the increase in global uncertainty.<\/p>\n\n\n\n “In the context of greater external risks, banks have preferred to strengthen their liquidity and capital levels, even when this implies giving up part of their profitability. This decision increases the system’s capacity to absorb eventual shocks and continue to support financing the Dominican economy,” according to the institution.<\/p>\n\n\n\n The analysis also specified that the Dominican economy registered a growth of 4.5% during the first half of 2026 and that the Central Bank foresees an expansion of close to 4.0% by the end of the year.<\/p>\n","protected":false},"excerpt":{"rendered":" Data for the first half of the year show that Dominican banks expanded their financing portfolio to the private sector while public deposits also increased. The ABA said the portfolio\u2019s evolution reflects an acceleration in accumulated growth. Credit to the…<\/p>\n","protected":false},"author":9,"featured_media":12538,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[149],"tags":[],"class_list":["post-12540","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment-in-dr"],"acf":[],"yoast_head":"\n