Dominican Republic Private Credit Growth Accelerates to 9.1%

Credit to the private sector in the Dominican Republic gained momentum during the first half of 2026, with the total portfolio increasing 9.1% year over year through June. The expansion was accompanied by a sharp rise in deposits, pointing to continued growth in the financial resources available to banks for lending and investment.

The Association of Multiple Banks of the Dominican Republic (ABA) said the credit expansion represented an additional injection of more than RD$80 billion during the first six months of the year, equivalent to about 1.0% of gross domestic product. The figure marks an acceleration from the 7.4% accumulated growth recorded at the end of 2025.

Credit Growth Supports Key Economic Sectors

The strongest lending momentum has been concentrated in commercial and mortgage financing, according to an analysis by the ABA’s Economic and Banking Studies Department. These segments are closely linked to business activity, housing and investment, with financing continuing to flow toward sectors such as construction, tourism and transportation.

The Central Bank of the Dominican Republic reported that total private loans in local and foreign currency also grew 9.1% year over year in June, adding approximately RD$217 billion compared with June 2025. The central bank reported that financial services were among the fastest-growing areas of economic activity during the month.

The broader economic backdrop has also improved. The country’s monthly economic activity index expanded 6.4% year over year in June, while average growth during the first half of 2026 reached 4.5%. Construction, financial services, transportation and hotels, bars and restaurants were among the sectors contributing to the expansion.

Central Bank Sees Further Credit Expansion

The ABA said the central bank expects credit to the private sector in Dominican pesos to accelerate gradually and reach 10.5% growth by the end of 2026. If that projection is achieved, financing would increase by approximately RD$149.8 billion, equivalent to 1.9% of GDP.

That outlook would extend the recovery in bank lending seen since the end of 2025. For businesses, stronger access to financing can support working capital and investment, while mortgage lending can contribute to activity in the housing and construction markets.

Deposits Rise as Bank Funding Expands

Deposits from the public increased even faster than lending during the period. Their year-over-year growth accelerated from 9.2% in December 2025 to 14.9% in June 2026.

During the first half of the year, deposits available to financial intermediation entities increased by RD$257.1 billion, equivalent to 3.3% of GDP. The expansion provides a larger funding base for banks as demand for credit continues to recover.

The combination of stronger deposits and rising credit is significant for the Dominican economy because commercial banks play a central role in channeling household and business savings into financing for productive activity.

Financial System Maintains Strong Prudential Indicators

The ABA also highlighted the financial system’s liquidity, asset quality and capital position. Data from the Superintendency of Banks show that liquid assets remain above 40% of the system’s assets, while the delinquency rate remains below 2.0%.

Coverage of past-due loans stands at close to 180%, providing a substantial cushion against credit losses. The system’s solvency ratio reached 17.3%, well above the 10% regulatory requirement.

Profitability has moderated but remains comparatively strong. Return on assets stood at 2.4%, while return on equity reached 20.3%. The ABA said those levels remain above the reported Latin American averages of 2.0% and 14.3%, respectively.

With economic activity gaining pace in the second quarter and credit growth accelerating, the trajectory of lending will remain an important indicator of the Dominican Republic’s recovery. The central bank’s projection for 10.5% private-sector credit growth by year-end would represent a further increase in the flow of financing to businesses and households if economic and financial conditions remain supportive.