Page 1 of 3 123 LastLast
Results 1 to 10 of 22
  1. #1
    Newbie
    Join Date
    Feb 2014
    Posts
    6
    Post Thanks / Like

    Default Deposit Insurance

    In the U.S., the FDIC insures your deposits up to a certain amount. Do banks in the DR have any similar protection for deposits?

  2. #2
    Silver
    Join Date
    Apr 2004
    Posts
    4,507
    Post Thanks / Like

    Default

    no way no how

  3. #3
    Silver
    Join Date
    Jun 2008
    Posts
    3,020
    Post Thanks / Like

    Default

    Because of the pressures from good ol USA, you cannot even guarantee getting your money back from caribbean banks without arduous efforts, if usd accounts. If you need to depend on a usd swift transaction you could be screwed. Land of the free, lolol.
    http://www.antillean.org/compliance-...ean-banks-134/

  4. #4
    Silver
    Join Date
    Jan 2002
    Posts
    2,402
    Post Thanks / Like

    Default

    Quote Originally Posted by Chasmc View Post
    In the U.S., the FDIC insures your deposits up to a certain amount. Do banks in the DR have any similar protection for deposits?
    Google Banniter in the DR.
    Based on what happened there I would say there is not much protection.
    Your post may be better off in the legal section of the forum. It would limit the type of answer like mine.

  5. #5
    Bronze
    Join Date
    Oct 2013
    Posts
    799
    Post Thanks / Like

    Default

    Quote Originally Posted by dulce View Post
    Google Banniter in the DR.
    Based on what happened there I would say there is not much protection.
    Your post may be better off in the legal section of the forum. It would limit the type of answer like mine.
    Maybe you should follow your own advise and google BANINTER. In this case, the government did give back the money to the bank customers. In fact, the government went beyond the call of duty by returning more money than the amount that was legally backed by the government. This eventually created a major crises in the DR.

    If you think the bank failure is a Dominican invention maybe you should read about the global financial crisis of 2008 and beyond.

  6. Dislikes dulce disliked this post
  7. #6
    Bronze
    Join Date
    Oct 2013
    Posts
    799
    Post Thanks / Like

    Default

    Quote Originally Posted by Chasmc View Post
    In the U.S., the FDIC insures your deposits up to a certain amount. Do banks in the DR have any similar protection for deposits?
    Per the 2014 "Deposit Insurance Database", deposits in Dominican COMMERCIAL banks are uninsured. However, deposits in Dominican Savings and Loan associations are (since 1962).

    In practice, the government de facto insure commercial bank deposits by taking over failed banks assets and giving back as much money as possible (possibly all, even if it has to make up the difference, as it did in the Baniter case, which resulted in a major financial crisis and the failure of the president's reelection bid).

  8. #7
    Silver
    Join Date
    Jan 2002
    Posts
    2,402
    Post Thanks / Like

    Default

    Quote Originally Posted by Virgo View Post
    Maybe you should follow your own advise and google BANINTER. In this case, the government did give back the money to the bank customers. In fact, the government went beyond the call of duty by returning more money than the amount that was legally backed by the government. This eventually created a major crises in the DR.

    If you think the bank failure is a Dominican invention maybe you should read about the global financial crisis of 2008 and beyond.
    I apologize for spelling BANINTER wrong. I understand petty things like this irritate you.
    I suggest you google BANINTER to read about the number of people that did lose their $$$$. It happened.
    Anyone who thinks their money is safe in a DR bank is gullible. And... Yes it is true $$$ is unstable all over the world.

  9. #8
    Bronze
    Join Date
    Oct 2013
    Posts
    799
    Post Thanks / Like

    Default

    Quote Originally Posted by dulce View Post
    I suggest you google BANINTER to read about the number of people that did lose their $$$$. It happened.
    Anyone who thinks their money is safe in a DR bank is gullible. And... Yes it is true $$$ is unstable all over the world.
    Let's see what the wikipedia BANINTER article says:
    "Though required by the country's Monetary Laws to only guarantee individual deposits of up to RD$500,000 Dominican Pesos (about US$21,000 at the time) placed within the country, the Dominican Central Bank (Banco Central Dominicano) opted to guarantee all $2.2B in unbacked BANINTER deposits, regardless of the amount, or whether deposits were in Dominican Pesos or American Dollars and without apparent knowledge whether the deposits were held in the Dominican Republic or in BANINTER's branches in the Cayman Islands and Panama. The subsequent fiscal shortfall resulted in massive inflation (42%) and the devaluation of the DOP by over 100%."

    Other sources confirm that the government returned all the money to BANINTER depositors.

    Of course some people lost money: NOT the depositors, but precisely the people who subsidized through their taxes the government actions.

  10. #9
    Silver
    Join Date
    Jan 2002
    Posts
    2,402
    Post Thanks / Like

    Default

    Virgo,
    So what you are saying is that there was no problem with Baninter? Read the rest of your Wiki article. I could quote tons of stuff about the scandal but that is not my style.
    Baninter was a disaster for the DR economy. There is no way you can dispute that!
    I am glad I got my $$$$ out in time.

  11. #10
    Bronze
    Join Date
    Oct 2013
    Posts
    799
    Post Thanks / Like

    Default

    Quote Originally Posted by dulce View Post
    So what you are saying is that there was no problem with Baninter? Read the rest of your Wiki article. I could quote tons of stuff about the scandal but that is not my style.
    Baninter was a disaster for the DR economy. There is no way you can dispute that!
    Did you read the original post? The question was about deposit insurance, that is, whether bank deposits were protected in case of bank failure. I already answered above. Technically they weren't (or were only up to a relatively small amount) but the government acted as if all deposits were fully insured.

    Of course it was very bad FOR THE COUNTRY. Not for the depositors.

Page 1 of 3 123 LastLast

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •