Dominican Republic - Country Commercial Guide
Financial Services

This is a best prospect industry sector for this country.  Includes a market overview and trade data.

Last published date: 2021-08-23

Overview

Current banking regulations permit the utilization of the following entities within the financial system: Multiple Banks, Credit Entities, Savings and Loan Associations, and Savings and Credit Cooperatives. In the early 2000s, legislative changes relaxed banking services, granted equal treatment to foreign financial intermediation entities, and established parameters to regulate admission into the Dominican Republic.

For regulation standards, Dominican regulation considers modern international trends. To promote the stability and security of the system, Dominican legislation follows the principles established in Basel Agreement I and II and adheres to strict compliance and a system closely monitored and operated by the financial and monetary authorities. The Monetary Board recently approved the regulation of banking subagents, which allows entities to provide certain banking operations and services, such as receiving payments, sending or receiving transfers within the Dominican territory, and the processing of specific requests for products and services. Among the main advantages of banking subagents is the possibility that people living in rural areas may gain access to banking services and thus access the Dominican financial market.

Leading Sub-Sectors

The most promising sub-sectors within this sector are:

  • Contactless transactions
  • Online Banking
  • Fintech
  • Cryptocurrencies
  • Opportunities 

The Dominican Republic’s banking sector is one of the largest contributors to the country’s GDP; the industry fosters the production and export of products and services through traditional financing and capital market structures. Digitalization offers banks numerous opportunities to increase financial inclusion by providing customers with better access to financial services. Digital innovations can facilitate broader financial education in the community and help provide formal credit to a greater number of people. This can have a significant impact on the economy and the productive development of the country.

The Covid-19 crisis has only increased this trend, since contactless transactions, digital signatures, and online banking are now the new normal, and not just a temporary trend.

Resources

DR Central Bank: https://www.bancentral.gov.do/
Superintendency of Banks: https://www.sib.gob.do/
Superintendency of the Stock Market: https://simv.gob.do/
PH Law – Law Firm: http://phlaw.com/

Javier Suarez, Commercial Specialist: javier.suarez@trade.gov