Dominican banks preserve financial strength and anticipate greater credit dynamism in 2026

The Dominican banking system closed 2025 showing high levels of solidity, stability, and resilience, despite an international environment marked by high economic and geopolitical uncertainty, according to a sector analysis by the Association of Multiple Banks of the Dominican Republic (ABA). The ABA highlighted that, during the past year, multiple banks maintained high liquidity indicators, a high-quality credit portfolio, adequate provisions, and profitability superior to that of their peers in Latin America, consolidating their regional leadership and a solid base to maintain their core support for productive activity through the dynamization of credit. Faced with an adverse global scenario and the slowdown in economic growth, the Dominican banking system showed a remarkable capacity for adaptation and prudence, prioritizing the comprehensive management of risks, the quality of assets and safeguarding public deposits, indicated the guild that represents multiple banks. In that context, the assets of multiple banks grew at an average annual rate of 9.8%, moderating compared to their 2024 growth (12.7%), according to the analysis prepared by the Economic Studies Department of the ABA. Regarding the credit portfolio, it was detailed that it represented 54% of the total assets, growing at an annual rate of 9.7%, strategically oriented towards productive activities and housing, along with a more cautious stance in higher-risk segments, such as consumption. In a press document, the ABA observed that both interest rates and private credit in national currency are already responding positively to the monetary measures implemented during the second half of 2025. It specified that interest rates registered a reduction of 150 basis points between June and December of last year, going from 14.8% to 13.3%.

Public trust drives fundraising

The Banking Association highlighted that public deposits registered an annual growth of 11.7% as of December 2025, surpassing the pace observed in 2024 (10.5%), driven mainly by the better performance of savings and term deposits. “This behavior reflects the public’s confidence in the soundness and stability of the banking system, and strengthens the funding base of the entities to continue supporting the economy,” he explained. “Looking ahead to this year, the economic outlook shows a gradual improvement and, although pockets of uncertainty persist globally, a more favorable external environment is expected, with better financial conditions and a recovery of Dominican economic growth. This scenario, along with a more flexible monetary policy, creates favorable conditions for greater credit dynamism and a positive performance of the banking sector,” estimated the ABA.