The Central Bank of the Dominican Republic has released financial stability reports covering September 2024 and end-2023, assessing recent developments and the financial sector outlook through 2025. The reports conclude there is no evidence of significant macrofinancial risks that could disrupt the provision of financial services in the short term, and stress tests indicate most financial intermediation entities are appropriately capitalised across credit, exchange rate, interest rate and liquidity risk scenarios. Stress-test results suggest the non-performing loan ratio would be around 1.5% in 2025 and remain near that level in 2026, while the solvency indicator would stay above the 10% regulatory minimum set out in Law No. 183-02 even under very adverse conditions. Liquidity stress tests indicate entities hold sufficient liquid assets to withstand sustained withdrawals of demandable liabilities, alongside 2024 liquidity-management measures including more flexible repo operations, removal of provisions on short-term interbank operations, maturity redemption of around DOP 140 billion in central bank securities, and the release of DOP 35,355 million from reserve requirements to support housing lending (up to DOP 5.0 million for low-cost housing and up to DOP 15.0 million for housing more broadly). The reports also note 2024 growth in intermediaries’ assets (10.3% to 51.7% of GDP), credit (12.2%), equity (14.8% to 6.3% of GDP), liabilities (to 45.4% of GDP) and public deposits (9.4%), and summarise regulatory and financial inclusion initiatives including a comprehensive update to the Banking Subagent Regulation and guidance for applying the Financial Products and Services User Protection Regulation. The reports have been made available to the public via the central bank’s website and the QR code referenced in the release, and the central bank indicated it will continue monitoring domestic and international financial conditions to take timely measures to safeguard financial stability.
Central Bank of the Dominican Republic 2025-02-18
Central Bank of the Dominican Republic publishes financial stability reports projecting a 1.5% non-performing loan ratio in 2025 and capital above the 10% minimum
The Central Bank of the Dominican Republic's reports for September 2024 and end-2023 indicate no significant short-term macrofinancial risks and adequate financial entity capitalization. Stress tests project a non-performing loan ratio of around 1.5% in 2025, with solvency indicators above the 10% regulatory minimum. The reports highlight 2024 growth in financial intermediaries' assets, credit, and equity, alongside regulatory updates and financial inclusion initiatives.