El Caribe reports that deposits made in dollar accounts in the Dominican Republic continue to increase at a fast pace. US$ deposits in commercial banks today make up 15.8% of the total deposits, up from 15% in December 2000. Baninter, BHD and Banco Popular attracted the most US$ deposits. Local bank US$ currency loans also were up 58% in 2000 over 1999, and represent 25% of all bank loans. This is up from 19% in 1999. Banks making the most loans in US$ were the Popular, BHD, Baninter, Bancredito, Citibank and Progreso. The newspaper attributes the increase in dollar loans to the much higher interest rates charged on peso loans and the relative stability of the dollar. The banks say they are able to offer lower rates on dollar loans because these do not have the high bank reserve requirements the Central Bank demands for peso loans.
