The Central Bank of the Dominican Republic published explanatory notes to address public confusion over whether the June 2025 reserve requirement release programme supported housing finance. The note sets out lending data showing that banks used a significant portion of the released resources for construction activity and home purchases, including low-cost and social housing. The liquidity programme approved by the Monetary Board totalled DOP 81bn, comprising DOP 64bn in released reserve requirements and DOP 17bn in reallocated Rapid Liquidity Facility loans that were scheduled to mature and return to the central bank from June 2025. As of 30 November 2025, financial intermediaries had used DOP 76bn (93%) of the authorised amount, including DOP 62bn in loans granted via reserve requirement releases to productive sectors at interest rates of up to 9% per year and to micro, small and medium-sized enterprises at competitive rates. Within the DOP 62bn, DOP 13.947bn went to construction (including land, machinery, equipment and inputs), of which DOP 1.882bn supported new low-cost housing construction; a further DOP 8.575bn financed home purchases, including DOP 5.278bn for low-cost/social housing and DOP 3.297bn for other housing types. In total, DOP 22.522bn was channelled to construction and home purchases (around 36% of the DOP 62bn), while low-cost housing alone received DOP 7.160bn (12% of the amount used). The note also states that, over November 2024 to November 2025, credit growth reached 25.5% for construction and 11.4% for home purchases versus around 8% for private-sector loans in local currency, while average lending rates fell between May and November 2025 by 232 basis points for construction loans (14.7% to 12.4%) and by 80 basis points for mortgages (12.1% to 11.3%). The central bank reiterated that reserve requirement resources are banks’ own funds held as a prudential reserve and that credit decisions are taken by each intermediary, while access to released reserve requirements is subject to documentary evidence and verification of terms and end-use before and after disbursement. It added that it will continue issuing clarifications and engaging with industry groups, and cited prior reserve requirement releases that also benefited the housing sector.
Central Bank of the Dominican Republic 2025-12-05
Central Bank of the Dominican Republic issues clarification on reserve requirement releases and reports DOP 22.5bn channelled to housing lending
The Central Bank of the Dominican Republic clarified that the June 2025 reserve requirement release programme significantly supported housing finance, with DOP 22.522bn channelled to construction and home purchases. Of the DOP 62bn in loans granted via reserve requirement releases, DOP 7.160bn was allocated to low-cost housing. The bank emphasized that credit decisions are made by financial intermediaries and will continue to provide clarifications and engage with industry groups.