Are banks in DR safe?

dylan212

New member
Oct 9, 2008
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Hi

With all the financial issues happening I would like to know if you feel safe having your money in a DR bank?

More specifically, my friend in DR has a savings account at Banco Progresso and he is not sure if it is safe. I'm not sure if DR banks have insurance like US banks to protect your savings. I notice that Citibank is in DR. I wonder if that is a safer bank or maybe it is not insured.

Thanks in advance for your feedback.

Dylan
 

AK74

On Vacation!
Jun 18, 2007
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Hi

With all the financial issues happening I would like to know if you feel safe having your money in a DR bank?

More specifically, my friend in DR has a savings account at Banco Progresso and he is not sure if it is safe. I'm not sure if DR banks have insurance like US banks to protect your savings. I notice that Citibank is in DR. I wonder if that is a safer bank or maybe it is not insured.

Thanks in advance for your feedback.





Dylan


I asked the same question to my bank. ***********

Answer : - Only bank accounts that have FDIC are safe. All others - ....
 

NotLurking

Bronze
Jul 21, 2003
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I asked the same question to my bank. ***********

Answer : - Only bank accounts that have FDIC are safe. All others - ....

Oh please! FDIC only applies to banks in the USA. What about banks in other countries? (UK, Canada or the whole of Europe) Also, FDIC only covers the first US$100,000 after that you are on your own.

The DR banking system did have a major crash fairly recent (2003) but I think they are safe enough at this point in time considering the global economic crisis. Banco Popular, among a few others, has been very stable and reliable for considerable amount of time. The central bank of DR has also been stable. Where to bank and banking in general is a very personal thing. You and you alone should have the final say about your money. Put your money wherever you are able to sleep well at night. The rest, well, should work itself out.

NotLurking
 

dylan212

New member
Oct 9, 2008
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only $250k?

Only $250,000 limit? I'm sure my friend in DR would love to have this problem, me too, but I think we are talking about 20k :)

Does the DR govt provide deposit insurance for all bank accounts? I assume no.

When the banks in DR crashed in 2003, did account holders lose all their money? I assume no again; if that happened just 5 years ago then nobody should trust their banks today.
 

AK74

On Vacation!
Jun 18, 2007
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Oh please! FDIC only applies to banks in the USA. What about banks in other countries? (UK, Canada or the whole of Europe) Also, FDIC only covers the first US$100,000 after that you are on your own.

The DR banking system did have a major crash fairly recent (2003) but I think they are safe enough at this point in time considering the global economic crisis. Banco Popular, among a few others, has been very stable and reliable for considerable amount of time. The central bank of DR has also been stable. Where to bank and banking in general is a very personal thing. You and you alone should have the final say about your money. Put your money wherever you are able to sleep well at night. The rest, well, should work itself out.

NotLurking


You yourself mentionned the crisis of 2003 - a very quiet and safe year.

Now we are in 2008.

You asked the question - it means you are smart and know also the answer. Nuf said.

Dominican banks also issued LOTS of mortgages. At even higher % and more difficult to repay than in US.

Hard to predict. Not me. Someone else.
 

Lambada

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Mar 4, 2004
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I personally have zero money in the Dominican Republic banks that I am not fully prepared to loose.

Likewise. That all stemmed from one frantic day in 2004 when I went to all the banks I had RD$ & US$ in here & pulled it out, when we were expecting the 'Hipolito corallito'. I never quite regained the confidence to put it back in again despite all the Monetary Policy adjustments & changes.
 

mike l

Silver
Sep 4, 2007
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Likewise. That all stemmed from one frantic day in 2004 when I went to all the banks I had RD$ & US$ in here & pulled it out, when we were expecting the 'Hipolito corallito'. I never quite regained the confidence to put it back in again despite all the Monetary Policy adjustments & changes.


Wow....never expected to hear this, and coming from lambada you know it's Gospel.

As standard policy I never leave more than 1 years worth of living expenses in any Bank and or Country.

Some banks have long lines and some do not and I am opening a new account with the one that does not!
 

johne

Silver
Jun 28, 2003
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Don't get fooled or confused because there is a Citibank presense in the DR. NOT sister banks. I'm sure there is a lot in the archives at dr1 on this subject as I recall postings some time back.
 

AK74

On Vacation!
Jun 18, 2007
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Fdic

For clarification in case if someone is interested.

"FDIC insured" means only that money won`t disapper irrecoverably. In case of bank failure Governement will compensate deposits some time in the future.

But "FDIC insured" does not mean a guarantee of withdrawal at any particular moment nor a guarantee that a bank or an account or ATM is not "temporarily closed for withdrawals for thechnical reasons". For a day. Or a week. Or a month.

That is why people now withdraw from their checking or savings accounts even $5 000- $10 000. Although they are "FDIC insured up to $ 100 000".
 

DRob

Gold
Aug 15, 2007
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For clarification in case if someone is interested.

"FDIC insured" means only that money won`t disapper irrecoverably. In case of bank failure Governement will compensate deposits some time in the future.

But "FDIC insured" does not mean a guarantee of withdrawal at any particular moment nor a guarantee that a bank or an account or ATM is not "temporarily closed for withdrawals for thechnical reasons". For a day. Or a week. Or a month.

That is why people now withdraw from their checking or savings accounts even $5 000- $10 000. Although they are "FDIC insured up to $ 100 000".


AK74,

First the main point - FDIC insurance only applies to American banks. Therefore, there is no reason to discuss it's application to DR banks.

Second, FDIC insurance has been extended - again, to American banks only - to cover deposits up to 250,000 USD through the end of next year.

AK, the issues confronting the global economy don't have to deal with small deposits in "traditional" banks. Please don't confuse people into believing that somehow FDIC insurance extends to deposits in non-American banks.
 

AK74

On Vacation!
Jun 18, 2007
842
36
0
AK74,

First the main point - FDIC insurance only applies to American banks. Therefore, there is no reason to discuss it's application to DR banks.

Second, FDIC insurance has been extended - again, to American banks only - to cover deposits up to 250,000 USD through the end of next year.

AK, the issues confronting the global economy don't have to deal with small deposits in "traditional" banks. Please don't confuse people into believing that somehow FDIC insurance extends to deposits in non-American banks.


You are right. To US banks only.

If I know some info that can help some people to protect their assests - I share it. Simple as that. It is the way it should be relations and communication among normal people. To help each other to survive. In a war against greedy shameless governments and corporate fat cats who ask taxpayers` money for rescue and spend it for half mil $ vacation right away.

Lawmakers: AIG execs went to resort before bailout - Yahoo! News

Very possible that not only DR residents read this Forum and if I can help even one man or one woman or one family to avoid misery and poverty - I will consider my mission done.

I do not want to see in our life this:

6 die in family murder-suicide in Los Angeles - Yahoo! News
 

slug

New member
Oct 13, 2005
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AK, I admire your gumption. I agree totally about helping others.
My guess is the banks in the DR may be safer than in the uS. But if the banks up there go, these will certainly follow. The poor peso is tied to the dollar.
 

mike l

Silver
Sep 4, 2007
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This is not DR related but may be of interest to those who do have FDIC insured accounts.

When a Bank in the good old U.S.A fails it falls into recievership and you get your money about 1 year later.
 
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bienamor

Kansas redneck an proud of it
Apr 23, 2004
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And

AK, I admire your gumption. I agree totally about helping others.
My guess is the banks in the DR may be safer than in the uS. But if the banks up there go, these will certainly follow. The poor peso is tied to the dollar.

how many of the depositers with bank inter got their money back>>>>>

FDIC is good, you will get it back someday, may take a year but bottom line you get it back
 

ExtremeR

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Mar 22, 2006
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The banking system in DR is very healthy right now after the collapse that crashed 3 banks in 2003, the kind of regulations that DR banks are subjected are pretty heavy and have led to some bankers to object them as they no longer are making loans at will.

In 2003 the CB bailed out the 3 banks and none of the deposits holders lost a dime, a move that was criticized at the time but should have put a precedent in DR?s banking system.

To talk about FDIC in a Dominicans banks thread is completely irrelevant, FDIC doesn?t have anything to do with local banks here. Although Popular Bank branch in NYC is insured with the FDIC as a requisite to operate in USA.
 

angus murray

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Sep 29, 2008
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Deposit Insurance

Banco Reserva de la Republica Dominica seems, in my opinion to be the safest by virtue of its ownership by the Government. My impression of all the other banks is that their ownership is concentrated in the hands of Generals, the wealthy and political types and that any compensation for monies lost with these banks ultimately occurs at their pleasure and not by any formal coverage extended by a form of deposit insurance.