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8.4% of Dominican banking credit is aimed at industry
Santo Domingo, RD.-In the context of the Dominican financial system, the national industry (local manufacturing and free zones) presents a credit portfolio with positive real growth and an upward trend.
The information is contained in the report Banking and national industry, published by the Superintendence of Banks (SB) this Thursday, National Industry Day.
According to the document, during 2021, the Dominican industry received bank financing for RD$149 billion, an injection of key resources in its recovery process after the crisis generated by the COVID-19 pandemic.
In real terms, the growth of the portfolio destined for the industry was 15.5% as of December 2021, being above the average of 12% of the last five years.
“Despite the crisis caused by the pandemic, the industrial sector has maintained a real growth rate that is higher than the rest of the sectors,” the document indicates.
70.7% of the total amount owed from the industrial sector is concentrated in four economic sub-activities: manufacturing of food and beverage products (42.3%), manufacturing of chemical substances (13.5%), manufacturing of furniture (9.9%) and other non-metallic mineral products (5%).
According to the publication, the industry is the second productive sector with the highest participation in the commercial portfolio of Dominican banks and the fourth item if the total portfolio is considered.
The industrial sector exhibits historically low delinquency levels. At the end of December 2021, 90% of the industrial sector portfolio presented risk classification “A and B”. On the other hand, the delinquency indicator for the sector showed a downward trend, standing at 0.68%, this being the lowest level in the last 5 years.
The report highlights the decrease in the participation of foreign currency in the sector’s credit portfolio, which went from 40.1% in January 2017 to 26.7% in December 2021.
The weighted average interest rate on industry loans has shown a downward trend in the last five years. As of December 2021, it stood at 6.8%, equivalent to 1.3 percentage points below the average rate of the commercial credit portfolio.
The report concludes that the national industry in the context of the Dominican financial system shows financial indicators at stable levels.
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