The Superintendence of Banks (SB) has 49 authorized financial intermediation entities: 18 multiple banks, 15 savings and credit banks, 10 savings and loan associations (AAyP), four credit corporations and two public institutions. is in dissolution bankamerica since January 2022.
The official data to date establish an irrefutable reality that has been strengthened over the years. There is a concentration in the Dominican banking. The six largest entities concentrate 83.9% of the assets. This happens while the others lose space in the financial pie, especially the AAyP and the savings and credit banks.
The value of the assets of the financial system, according to the data as of February of this year, reached RD$3,007,321 million. Of this amount, the first six entities have RD$2,523,265.7 million (83.9%), which indicates that the remaining 43 barely have 16.1% of the total.
banks of Bookings (RD$1,014,669.2 million and 10,822 employees), Popular (RD$638,695.8 million and 7,026 employees) and BHD (RD$465,801.9 million and 5,380 employees) lead the table with a combined participation that exceeds 70%.
However, the size and concentration also serve to ensure that the former are the main generators of jobs in the system and those that obtain the best risk rating. Of the 42,079 jobs that depend on the financial sector, according to data as of February, the first six generate 29,324, for 69.7%.
Regarding the risk classification, the main financial intermediation entities are in category A, AA and AAA, with their respective signs + and – in some cases. A few are between BB and BBB, which is also a stable level with positive prospects.
Of the 32 financial entities that have a risk rating published on the SB website, the two foreign capital entities, Scotiabank and Citi, are the only ones with the highest AAA category, while Popular, Reservas and Bandex banks appear as the only local institutions with AA+. In AA- are BHD and APAP, while the others are between A and B.
The AAA rating, as defined by the rating agencies, corresponds to securities whose issuers and guarantors have excellent principal and interest payment capacity, under the agreed terms and deadlines, which it is estimated would not be affected by possible changes in the issuer and their guarantor, in the sector to which they belong and in the economy in general.
The fourth financial entity of the system, by the value of the assets, is Scotiabank with RD$151,015.2 million, for a relative participation of 5% and employs 2,751 people in 63 branches. It has 261 ATMs.
However, despite the fact that they have lost weight within the system’s total assets, there are three savings and loan associations that remain in the top ten. The first is the Popular Association of Savings and Loans (APAP), with assets of RD$126,848.5 million, followed by Cibao (ACAP), with assets of RD$74,717.6 million, and by La Nacional, with RD$37,115.9 million in assets.
Importance
Shareholders are fundamental to founding and giving financial entities sustainability, while they are key in generating trust.
By the number of shareholders, the BHD banks, with 2,145; Popular, with 746; and Bancotuí, with 200, are in the first places. With more than 100 there is also Scotiabank, which has 128.
The Banreservas and Bandex only appear with one, since they are owned by the State, while the savings and loan associations do not have shareholders, since their mutual status makes them the property of all depositors.
Other financial entities with a significant number of shareholders are: Adopem (66), Ademi (53), López de Haro (46), BDI (39), Banco Caribe (35), Atlántico (33), Gruficorp (30) and Nordestana ( 21), as well as Oficorp, which has 24.
Regarding foreign capital entities that are not among the main ones, Banco Activo has 4 shareholders with a BB+ rating and 137 employees, with 4 branches.
Among all financial intermediation institutions, according to data from the SB, there are 3,294 ATMs in operation throughout the country.