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Banking Regulation in the Dominican Republic

Overview of Banking Regulation

The banking sector in the Dominican Republic is subject to various regulations and laws that govern its operations. In this article, we will explore some key aspects of banking regulation in the country.

Personal Liability of Bank Managers and Directors

Are managers or directors personally liable in the case of a bank failure?

Yes, they are personally liable if they failed to act with due care and to observe their fiduciary duties.

Evolution of Bank Resolution

How has bank resolution changed in response to the recent crisis?

No additional changes have been made since the legislation passed as a result of a crisis in the mid-1990s. The process and scenarios whereby the SIB is entitled to intervene in a bank were clarified then, and those clarifications still remain in full force and effect.

Regulatory Capital Adequacy Requirements

Describe the legal and regulatory capital adequacy requirements for banks. Must banks make contingent capital arrangements?

Banks in the Dominican Republic are required to have regulatory capital of at least 10% of risk-weighted assets. Multiple-service banks and credit institutions that do not comply with the capital adequacy ratio are legally considered to be insolvent.

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