Fitch completes peer review for large Dominican banks
Santo Domingo.– On May 14, 2014, Fitch Ratings completed a peer review for three private sector banks and their related entities as well as one state-owned bank in the Dominican Republic.
At that time, Fitch affirmed the banks’ ratings as detailed at the end of this release. The four banks included in this peer review are Banco Popular Dominicano (BPD); Banco BHD S.A.(BHD); Banco de Reservas de la Republica Dominicana, Banco de Servicios Multiples (BANRESERVAS); and Banco Multiple Leon S.A.(BML).
The banks are among the largest in their market and each had assets between USD7.2 billion and USD1.2 billion, with operations primarily in the Dominican Republic.
Based on 2013 financial statements, asset quality indicators remained stable or improved at all the banks covered in this review, driven by moderate loan growth and a strengthening local economy.
However, asset quality indicators at Dominican banks were weaker than international peers (emerging market commercial/universal banks with a ‘b’ category VR). Given better economic conditions in the Dominican Republic, Fitch believes asset quality indicator trends will be sustained in 2014.
Fitch published the main findings of this peer review completed in May in a report ‘Peer Review: Dominican Banks’, which is available at www.fitchratings.com. Fitch concludes that the large Dominican banks are well positioned to take advantage of the local economy’s accelerating growth.
Category: DR News |