Friday, March 24, 2023

Dominican banking lacks links with Silicon Valley Bank and Signature Bank

The Association of Multiple Banks of the Dominican Republic (ABA) reported that it has no relationship with correspondent business with Silicon Valley Bank and Signature Bank, entities that recently closed operations in the United States.

He recalled that the country managed to “get out of the 2008 global crisis” thanks to the regulations implemented since the first decade of this century in the financial system and the continuous strengthening of commercial banks in capitalization and comprehensive risk management and innovation.

He stressed that the economic stability that the country has maintained is due to the resilience and robustness of the indicators of the financial system, which occupies top positions in the region in terms of liquidity, profitability, low delinquency and solvency.

In this sense, the ABA reported that the capital solvency of commercial banks (an indicator that measures the degree of capital robustness) stood at 15.3% as of December 2022, well above the 10% regulatory requirement. Meanwhile, the delinquency of the portfolio, measured through the delinquency index, stood at 1.0%, and the coverage index at 427.8 as of January of this year, indicators “that reflect a healthy state of banking assets in the Republic Dominican Republic”, he indicated through a press release.

He pondered that multiple banks and the regulatory and supervisory authorities of the financial system maintain constant communication and in real time, in order to monitor the operation of the sector and maintain a proactive attitude in the face of any situation that could affect the Dominican Republic.

“We reaffirm our commitment to the well-earned trust that users place in the banking sector, by placing their resources in their hands so that, in turn, we continue making multiple investments and facilitating credits to promote the productive sectors and the well-being of Dominican families”, expressed the union.


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