Yesterday the Senate wrapped up much of its work on the draft Financial and Monetary Code, leaving only 33 articles to be debated, most of those related to savings and loans institutions. Senate President Ram?n Alburquerque (PRD-Monte Plata) told reporters that the Finance Committee is meeting this morning with representatives of the Central Bank and the savings and loan industry to try to hammer out a compromise on the 16 relevant articles. The savings and loans want to be put on competitive par with commercial banks, able to offer a broader range of financial services.The amendments to the Executive Branch’s draft made by the Senate are creating some concern in financial and business circles. For example, the Senate changed the term of appointment for the Central Bank Governor and Superintendent of Banks from four to one year; many bankers and businessmen have worried aloud that this would subject these positions to greater political pressure and reduced policy consistency, in the process hurting market confidence. Yesterday the Senate amended Article 206 to allow financial groups to obtain financing for up to 100% of their so-called "paid-in capital" (called "own funds" in Europe) and reserves. Some experts question the financial prudence of such a rule.
