Santo Domingo.– As of July 2024, total public deposits in all financial establishments reached an estimated RD$2 trillion 257,253 million. This incorporates a rise of RD$155.8 billion in the first seven months of 2024 alone, representing a percentage increase of 7.41% in the same period, data released by the Association of Multiple Banks of the Dominican Republic (ABA) shows.
The alterations in deposits were primarily a result of the rise in term deposits and demand deposits which saw an increase of RD$101.5 billion and RD$49.2 billion respectively, says the Superintendency of Banks.
It was stated that the deposit evolution during the period mirrors the trust in multiple banks to safeguard and protect resources. These resources are in turn significantly used for credit and investment operations creating a positive impact on economic growth.
Banks’ capability to attract and retain deposits, which plays a critical role in ensuring the liquidity and stability of the financial system, is also demonstrated.
Despite experiencing a 7.41% growth in public deposits between January and July of the year, this was lesser than the 12.20% registered in the same period the previous year, the ABA stated. This is seen as a normal fluctuation given the multiplier effect stemming from the liquidity facilities offered by the Central Bank in 2023.
Banking interest rates
The average active and passive rates for multiple banks stood at 15.3% and 10.3% respectively as per ABA report, with data provided by the Central Bank for July 2024.
The active rate, which represents the percentage that banks charge customers for loans granted, and the passive interest rate, the percentage that banks pay to depositors in savings accounts or other financial instruments, were explained.
In light of this, the ABA anticipates that there will be a gradual reduction in the interest rates applied to bank loans and deposits as the Central Bank continues with the cycle of reducing the Monetary Policy Rate and other flexibility measures as initiated in its latest provision.
-.
