Bank Failures in the D.R.

waytogo

waytogo

Moderator - North Coast Forum
Apr 3, 2009
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Santiago DR
I have been living here full time for close to 3 years and have never heard of a bank in the D.R. closing it's doors due to bad investments or for any reason. With all the banks going under in the states and the economy being as bad as it is, has anyone here heard of any banks closing it's doors.
 
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donP

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Dec 14, 2008
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"Todas las Posibilidades"

waytogo said:
any banks closing it's doors
Click to expand...
The second largest bank (BANINTER) went under in a fraud linked to corrupted politicians in 2003.
Their slogan was "Todas las Posibilidades", so the clients had been warned... :bunny: ;) :cheeky:

There were others but their collapses were less spectacular.

donP
 
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engineerfg

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Does the government / central bank offer a Deposit Insurance program and if so to what limit?
 
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ExtremeR

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Mar 22, 2006
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In the PRD government three major banks went belly up: BANINTER, BANCREDITO and another one which I don't remember.

And Yes the Central Bank does insure deposits to a certain amount. In 2003 went those banks went down the government bailed out everybody sending the dollar value to the moon.
 
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el forastero

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Oct 25, 2009
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What a time to live through - the tasa also hit a high of about 55:1 during the same time frame.

Another effect from these scumbag bankers- these same banks also had insurance companies. BanCredito went belly up and Banco Leon took them over with no problems on bank deposits, but BanCredito's insurance company also went belly up. No credit or refunds for unexpired insurance. I then switched to another bank for insurance, which went belly up a few months later, again sticking me with worthless insurance. Then to La Colonial.
 
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rubio_higuey

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Feb 7, 2007
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Didn't Progreso also have some troubles in the past...?

On the other note some time ago I read a report that DR banks were quite immune form WFC (world financial crisis) ... reason mentioned? They lend little and do safe assets.
 
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Banker Bill

DR1
Apr 3, 2009
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Credit Ratings and Default Rates

If the sovereign debt credit rating of the Dominican Republic is 'B', is it not safe to assume that all Dominican Republic banks cannot be rated higher than 'B.'

If so, then on average, Dominican Republic banks rated 'B' should have approximately a 1 and 12 chance of default (banks rated 'B-' should have a approx. a 1 and 7 chance of default).


-BB :bunny:
 
waytogo

waytogo

Moderator - North Coast Forum
Apr 3, 2009
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Santiago DR
Banker Bill said:
If the sovereign debt credit rating of the Dominican Republic is 'B', is it not safe to assume that all Dominican Republic banks cannot be rated higher than 'B.'

If so, then on average, Dominican Republic banks rated 'B' should have approximately a 1 and 12 chance of default (banks rated 'B-' should have a approx. a 1 and 7 chance of default).
Click to expand...

Are there any banks here in the D.R. that you know of that are rated A or B+, and have been for an extended period of time?
and, is there a rating system here for local banks on a website that can be studied?
 
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pelaut

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Aug 5, 2007
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When BanInter went down it dragged a slew of off-shores with it like Metropolitano (Ital.), Sumitomo (Japan) . . . that withdrew dozens of branches in one afternoon.
Sure, come on in. The water's fine. Risk and interest, after all, aren't related in the DR!
When your pesos go from 36 to 66 a dollar, you can cash in to get the net of all that really high interest you got paid.
 
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Banker Bill

DR1
Apr 3, 2009
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DR Bank Ratings

waytogo said:
Are there any banks here in the D.R. that you know of that are rated A or B+, and have been for an extended period of time?
and, is there a rating system here for local banks on a website that can be studied?
Click to expand...
To my knowledge, there are no banks in the DR that have a foreign currency long-term Issuer Default Rating (IDR) that exceeds the Dominican Republic's sovereign debt credit rating of 'B'. If the bank is under coverage, then generally, one of the ratings agencies will publish a national rating along with the foreign currency long-term (IDR). I don't know of any website that publishes a list of the national or IDR ratings of the banks in the Dominican Republic.

-BB:bunny:
 
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