BanReservas: the awakening of a giant
Writing in Diario Libre today, Thursday 21 August 2014, financial expert Alejandro Fernandez Whipple says that the governmental BanReservas has broken the mold of giants losing agility and is making waves for its dynamic influence instead. He reports that of every RD$100 lent to companies, households or individuals, 76% was lent by BanReservas over the past seven months. While in the past, BanReservas was known for lending to the public sector, he says that fortunately the figures for the past seven months of 2014 show that private credit is again growing, while public credit is contracting.
He highlights that from December 2013 to July 2014, according to the Central Bank, private credit increased by RD$34.9 billion, while lending to the public sector was down RD$1.5 billion. He said this trend is positive, even though net public borrowing is still higher than its record levels of the past years.
Fernandez writes that BanReservas has 28% of all bank assets in the country in 2012, but only 15% of the loans to the private sector, but this has changed under the new BanReservas administration. As of June 2014, BanReservas lending is now 21.5% of all private loans. He says any banker will say that BanReservas has dramatically influenced the lending rates downwards as a result of its push to attract private borrowers by offering lower rates than its competitors. The main beneficiaries of the lower rates are thousands of households and companies.
Source: DR1, DiarioLibre
Category: DR News |