Superintendent of Banks Mission meets with the International Monetary Fund (IMF)

The Superintendent of Banks, Luis Armando Asuncion, met with the mission of the International Monetary Fund (IMF) to analyze the performance of the Dominican financial system, in the context of assessing the economy dominicanabasada in Article IV of the Convention of that organization.

At the meeting, held at the headquarters of the Superintendency of Banks, Asuncion said the financial strength and the favorable evolution of the financial system in the first nine months of 2015, reflected on a credit rating system 17.17 % in September 2015, remaining at a level above the minimum of 10% set in the Monetary and Financial Law 183-02.

Similarly, he highlighted the return on average equity (ROE) of multiple banks, which stood at 25.81% in September 2015, and the quality of the loan portfolio, by registering a default level of 1.54%, with provisions made to cover a 185.5% total overdue loans of banks.

The Superintendent also said that during the first nine months of Anola loan portfolio of the financial system recorded an increase of RD $ 72,292.51 million, equivalent to a growth rate of 9.96%, which is consistent with the evolution of economic activity. He added that the portfolio of consumer loans increased by RD $ 23,127.97 million, with a growth rate of 13.71%, and mortgage grew by RD $ 14,588.43 million, equivalent to 11.96%.

The IMF mission, headed by AlionaCebotariOuanes, said that among the issues that focus their attention destacanlos nonresident deposits under FATCA Act, as well as indicators of financial inclusion.

In that sense, Asuncion reported that in June 2014 the Dominican government signed an agreement with the US government to improve the implementation of the Law on Tax Compliance on accounts abroad (FATCA for its acronym in English) so the Dominican Republic will be considered in compliance with this Act until the review of the definitive agreement is concluded.

Also, the Superintendent noted that under the provisions of the Banking Regulation subagent, have authorized a total of 2,513 establishments performing operations on behalf and for the account of the financial intermediaries, which has generated a positive impact on the levels of banking and financial inclusion of the Dominican population, who benefit from greater access to financial services, a process that has reached remote and inaccessible locations.

The meeting discussed progress and challenges for banking supervision is also discussed; Credit growth and financial indicators of the State Bank; the status and results of the transformation of the National Development Bank of Housing and Production (BNV) National Bank of Exports (BANDEX); trust agreements registered with the Supervisory Agency, as well as recent changes in the regulatory framework of the Dominican financial system.

The mission coincided in highlighting the favorable evolution of the Dominican financial system, and thanked the Superintendency of Banks for explanations, completeness and clarity of the information provided.

Participated in the meeting, IMF, AlionaCebotariOuanes, Chief of Mission, MetodijHadzi-Vaskov, Johan Niklas Westelius, Svetlana Cerovic, Marina Marinkov and Frank Fuentes, representative of the Dominican Republic to the Superintendency of Banks same.Therefore participated also Superintendent Luis Armando Asuncion, Manager, Jesus Geraldo Martinez; the Deputy, José Francisco Peña; Advisor Raul Hernandez; Director of the Department of Risk Management and Studies, Melissa Jimenez; Director of the Department of Standards, Maribel Concepcion, and the Director of the Department of Records and released, Lilliana Rodriguez.