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Dominican financial system boasts more than 39,000 jobs

By on September 16, 2017

Editor’s note: The following article originally appeared in the September 14 print edition of Caribbean Business.

By El Dinero

SANTO DOMINGO, D.R. — The financial system is an important sector of the Dominican Republic’s economy and, as of June 2017, accumulated assets amounting to RD $1.5 billion in full-service banks, savings & loan associations and savings & credit banks, operating with a head count of 39,646 employees.

In December 2016, the financial system had 39,224 employees on its payroll—reflecting an increase of 422 employees—which indicates that in six months, the labor market expanded by 1%, according to data from Banco Central.

At present, the Dominican financial system has 59 institutions that include 18 full-service banks, 18 savings & credit banks and 10 savings & loan associations.

Full-service banks contribute 31,471 jobs, which means they employ the greatest number of people in the sector, largely due to their institutions’ structure and their national reach through 949 branches.

Meanwhile, savings & loan associations have 4,421 employees in 229 branches. Savings & credit banks, however, have 3,754 employees in 192 locations.

The financial sector contributed 10.4% to the government’s overall revenues, becoming the third-highest economic activity to make contributions to the country’s fiscal revenues in 2015.

The information was provided by the Association of Commercial Banks of the Dominican Republic (ABA by its Spanish acronym) in its 2016 Statistical Bulletin, which breaks down the contributions that the country’s main economic sectors make to the government’s coffers.

“Full-service banks represent 86.3% of the total assets of the regulated intermediaries that make up the financial system, which demonstrates banks’ role in overall collections and places the sector in the top-three that provide [the government with] the most tax income,” the ABA said.

The financial sector was only surpassed by manufacturing—which contributed 28.1%—and commerce, which contributed 24.9%. The fourth position is held by education, which contributed 6.9%, and is followed by communications with 5.9%, other services with 5.6% and public administration with 5.2%.

In the past six years, the financial sector has created 10,796 jobs, which represents a 37.4% growth rate. Its workforce went from 28,605 employees in 2012 to 39,646 in June 2017.

The greatest growth was reflected in 2016, when data on savings & credit banks was included. They contributed 3,714 jobs by this date—an increase of 15% compared to 2015 when the payroll was 34,205 employees and rose to 39,224 in 2016, according to the Superintendency of Banks.

Steady growth in financial sector

From 2012 to 2016, the financial system’s labor market reflected an absolute growth of 2.1%. During 2013, BanReservas showed some variations within its payroll. In March, it had 7,303 employees and, in June, the number decreased to 7,186. However, by December, the financial institution had 7,722 employees, which represents a 7.5% increase in its workforce by the end of that year.

Something very similar happened to BanReservas from June to September 2015. Its payroll decreased by 4.5%—from 9,426 employees in June to 9,013 in September—ending the year with 9,301 employees. As of June 2017, this financial institution had a workforce of 9,925 employees.

In 2013, Banco Popular showed an unfavorable variation from a labor perspective, going from 7,100 employees in September to 6,964 in December, after experiencing continuous growth in 2012 and in the third quarter of 2013. The same happened from September to December 2014 when the payroll stood at 7,324 but it ended the year with 7,060 employees.

Between 2015 and 2016, Banco Popular reduced its payroll by 2.3%, going from 7,330 employees to 7,162 at the end of each year. As of June 2017, the institution had 7,155 employees.

In 2012, BHD bank and Banco León’s merger had still not taken place, so in December of that year, the BHD had 2,992 employees while Banco León had 1,589.

In 2013, the BHD added 195 employees while Banco León reduced its payroll to 1,543. In September 2014, these banks merged and featured a payroll of 4,336 employees. Since that year, its payroll has been constantly increasing. At the end of 2015, it had 4,639 employees and closed 2016 with 4,965. As of June 2017, BHD León had a workforce of 5,012 employees.

The largest

Within full-service banks, BanReservas is the financial institution with the largest payroll in the country and featured 9,925 employees during the first half of 2017.

BanReservas has assets of RD $450 billion and is followed by Banco Popular with 7,155 employees and assets of RD $349 billion. BHD León comes in third place with 5,012 employees and assets of RD$245 billion.

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