Thursday, June 8, 2023

ABA presents the performance of Dominican multiple banking to the IMF

Delinquency remains at historical levels, registering 1.0% as of March of the current year and solvency stood at 15.2%, as of February 2023, above the regulatory requirement, reported the Association of Multiple Banks of the Dominican Republic (ABA). during a meeting with a mission of the International Monetary Fund (IMF) visiting the country.

The president of the ABA, Rosanna Ruiz, highlighted the real growth of 8% in deposits compared to March 2022, which she described as a sign of the citizens’ confidence in the multiple banking.

ABA executives spoke with the IMF mission about the performance of the sbanking sector and the union’s perspectives on issues that affect this financial area.

In addition, the perspectives of the financial sector were analyzed, the behavior of the interest ratesthe impact of international situationactions regarding cybersecurityamong other topics.

In the current year, multiple banks have continued to show a healthy and robust performance, evidenced in their main indicators of liquidity, asset quality, profitability and solvency, explained the executive to Dirk Jan Grolleman and Manuel Rosales Torres, representatives of the IMF .

Regarding the policy implemented by the monetary authorities, the president of the ABA its effectiveness with an inflation rate already close to the target, highlighting that a faster transmission channel has been registered through the passive rate (that which savers receive for their deposits), compared to the active rate (the one paid to banks for granting credits).

“We are hopeful that a Monetary Policy Rate that favors a gradual reduction in interest rates,” Ruiz said during the meeting.

Refering to bankruptcy of financial institutions In the United States, Ruiz ruled out contagion in the national sector, since the country’s multiple banks do not have correspondent relationships with the affected banks in that nation and their indicators show their resilience as one of the pillars of the macroeconomic stability.

On the other hand, he explained to the agency’s executives that one of the priorities of the multiple banking is prevention in terms of cybersecurity, through the training of employees of the banking, he technological strengthening and collaboration with the State to create an effective regulation on the matter, in addition to the large investments made by the sector in this area and in the prevention of money laundering.

He also spoke about initiatives aimed at facilitating access to credit for MSMEsincrease the access to banking services for 51% of citizens excluded from access to formal financial services and guidance to multiple banking users through the page, among other initiatives.

Also present at the meeting with the IMF mission were Manuel González, Julio Lozano and Pamela Castillo, Technical, Economic Studies and Communication directors respectively, among other executives from the banking guild.


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