Santo Domingo.- With the arrival of the Law that updates the Bank of Reserves of the Dominican Republic, now in operation under the promulgation of President Luis Abinader and its respective publication in the Official Gazette. This legal framework renews the entity to Bank Múltiple and positions it for efficient performance within a highly competitive and continuously evolving financial sector.
In accordance with this new legislation, the Bank of Reserves will manage an initial capital that allows adjustments by the Board of Directors, based on the criteria of the Monetary and Financial Law. This faculty to modify the capital, based on its patrimonial reserves, facilitates the strengthening and regulatory compliance of the institution without the need to go through the legislative.
An important modification is the end of the tax exemption that previously benefited the Bank, establishing thus a level playing field in comparison with the other financial entities of the country.
The change in the official denomination to Bank of Reserves of the Dominican Republic – Bank Múltiple and the update of the general administrator position to executive president, adjusting to similar standards in both national and international banking without altering the structure or functions of the work team.
“With this regulatory update, the first in more than six decades, the Bank takes a step forward towards modernization, flexibility in digital operations, innovation and commitment to environmental sustainability”, indicated Samuel Pereyra, executive president of the Bank.
Board of Directors
The legislation aligns with current and financial sector requirements. The Board of Directors will be composed of a select group, including the Minister of Finance, the executive president of the Bank and twelve other members appointed by the Executive Power, of which three will be recommended by the Monetary Board and cataloged as “independent members”. This structure maintains the number of members without the need for substitutes.
Upon leaving their position, the members of the Board, except for the Minister of Finance, will be required to abstain from occupying director or advisory positions in financial entities for a year, as established by the new law.
Distribution of Profits
The State, as the sole shareholder of Banreservas, will continue to receive its share of the profits, maintaining the current scheme in terms of distribution of benefits and patrimonial reserves, in addition to transparent and streamline processes in line with already efficient practices.
Other Regulations
The Bank of Reserves, under the new law, is subject to common regulations and operations of multiple banks, eliminating previous privileges and advancing towards greater banking competitiveness. It maintains the Retirement and Pensions Plan unchanged, as well as the rights of collaborators, and updates its governance to respond to current economic and legal changes. The law also emphasizes transparency, accountability and commitment to the country’s economic and social development.
credits of the images of this post: Elpregonerord.com
