AUTONOMOUS UNIVERSITY OF SANTO

SUNDAY (UASD)

Subject:
Advanced Accounting I

Facilitator:
Carlos Subervi

Section:
12

Students:
Lisbeth Segura Matos

Leanny Holguín

Enrollments:
100476472

100395722

Theme:
History and Operation of the Bank of Reserves

Delivery date:
May 8, 2023

1
INTRODUCTION

The development of the financial system in any country is closely related to its de-
institutional, political, and economic roll, since the intermediation entities
They provide technical, logistical, and institutional security support that the eco-activity needs.
general dynamics, reflecting, therefore, the business and investment climate, stability and
periods of economic contraction or expansion.

In our country, the history and evolution of the financial system helps us understand the situation.
general in the different periods of the Republic, as it reflects the levels of development,
institutionality, trust, and stability prevailing. And this story begins along with Independence
National.

In 1941, the Dominican government acquires the National City Bank, born from this...
On October 24, the Reserve Bank of the Dominican Republic, as custodian of
the fiscal rents. With this step, a national credit system was opened, as
Since its inception, this institution has been the financial and fiscal agent of the Dominican government, to
time that carries out banking operations with the private sector. The Reserve Bank was
created by Law 586 of October 24, 1941.

In that sense, the present work gathers all the most relevant information about the
Bank of Reserves of the Dominican Republic, like its history, its corporate evolution, its
history, its services, its legal basis, its financial status, risk rating, main axes
cutvos, the direction and management of the bank, organizational culture, among other points.
important.

2
HISTORY OF THE RESERVES BANK

At the beginning of the year 1941, the commercial banking of the Dominican Republic was totally
foreign and dominated by three banks: National City Bank of New York, with six (6) offices;
The Royal Bank of Canada, with five (5); and The Bank of Nova Scotia, with one, for a total of
12 offices.

The negotiations carried out between the Dominican Government and The Nacional City Bank of
New York (established in the country in 1926) extended for several months, concluding
with the signing of the sales contract between the future Bank of Reserves of the Republic
Dominican Republic and The Nacional City Bank of New York.

On Friday, October 24, 1941, at 11:30 in the morning, the members of the National Congress
They met in the Chamber of Deputies to listen to the message from the then head of the Po-
the Executive, Rafael Leonidas Trujillo, at the moment of depositing the draft bill dest-
I was born to the creation of what would be the Bank of Reservas of the Dominican Republic.

The banking institution would be destined to support the future of our independence and continue
economic rush, for the time had come to organize the economy rationally
Dominican. In such a sense, efforts were made to provide guidance and flexibility to savings, credit, and the
Dominican investments; promote and stabilize international trade and the exchange of services
and strengthen the private initiative, encouraging the creation of businesses that diversify
they will intensify and invigorate the production.

The Board of Directors, which met for the first time on October 25, 1941, was
comprised of the Dominicans Virgilio Álvarez Pina, as president of the Council and who for
then he was Secretary of the Treasury and Commerce; and Pedro R. Espaillat, until now
Manager of Casa Espaillat, who took office as vice president. Meanwhile, with the
functions of vocals sessioned Anselmo Copello, former owner of the Company
Anonymous Tobacco Company and José Antonio Jiménez Álvarez, sugar producer from San Pedro de Macorís,
In addition to three North Americans. From that first session, the first was appointed.
secretary of the Council, the lawyer and intellectual Lic. Julio Ortega Frier.

The original capital of Banreservas was one million pesos - RD$1,000,000 that would be paid
by the State. It was established that the undersigned was to be five hundred thousand pesos
(RD$500,000.00). Our first offices were located in Santo Domingo, Santiago,
La Vega, Puerto Plata, Barahona and San Pedro de Macorís.

Little by little, the bank began expanding its presence throughout the Republic, identifying with the
aspirations of each community and making development projects their own in all the
orders. Banreservas grew in unison with the country, as it is demonstrated today with
our more than 250 offices, which have an increasingly skilled staff.
committed, backed by the most advanced banking technology.

Since its origins, the Bank of Reserves of the Dominican Republic has not only been a inst-
financial institution that has exclusively contributed to the national economic development, but

3
which, also due to philosophy and commitment, has a prominent participation in the promotion of
music, literature, education, sports, visual arts, and everything that means
integral development of the human being, collaborating shoulder to shoulder with institutions of
broad social outreach in the service of the most needy.

LEGAL BASIS

Organic Law of the Bank of Reserves of the Dominican Republic, No. 6133, of the 17th of
December 1962, Official Gazette No. 8728, and its modifications.

General Banking Law No. 708, of April 14, 1965, Official Gazette No. 8940 (Bis), and
its modifications.

• Decree No. 273, of June 10, 1997, Official Gazette No. 9956, which ratifies the Bank
of the Dominican Republic as custodian of the funds of the Dominican Government
cano.

Law No. 183-02, of November 21, 2002, Official Gazette No. 10087, Monetary Law
and Finance. Constitution of the Republic.

The Reserve Bank has a responsibility to our clients and to ourselves,

Well, we are the direct representatives of the Banreservas brand, and we reflect that with our
attitudes and behavior to fully live the brand.

VISION

To be the financial entity recognized for our excellence and human quality, committed.
with the social and economic welfare of the country.

MISSION

To promote the prosperity and well-being of all Dominicans in a sustainable manner.

VALUES

Commitment
Leadership
Excellence
Integrity
Innovation

4
ORGANIC LAW OF THE BANK OF RESERVES OF THE DOMINICAN REPUBLIC NO. 6133 DATE
DECEMBER 17, 1962 AND ITS LATER MODIFICATIONS.

Organic Law of the Reserve Bank of the Dominican Republic.

The State Council in the name of the republic has issued the following law number 6133 chapter

Foundation, Address and Branches

ART.1.- The Reserve Bank of the Dominican Republic (1), an institution created by Law No.
586, dated October 24, 1941, with its main address in Santo Domingo, Na- District
Santo Domingo, Capital of the Dominican Republic, will henceforth be governed by this law.

ART. 2.- The Reserve Bank of the Dominican Republic is an autonomous entity of the State.
Tado, with its own assets, endowed with legal personality, with the authority to contract and
to sue in his own name and right. Similarly, he may be sued, and will have,
more, the powers that are granted to him by this law.

ART.3.- The Reserve Bank of the Dominican Republic, which is referred to in this Law as
The bank may establish or eliminate branches, agencies, and correspondences in those
places, inside and outside of the Republic that its Board of Directors deems appropriate,
whenever it complies with the provisions of the General Banking Law.

Capital and Shares

ART. 4.- (Amended by Law No. 1-22 dated January 5, 2022, Official Gazette 11055).

The social capital of the Reserve Bank of the Dominican Republic, Multipurpose Bank
please, amounts to thirty-nine billion Dominican pesos with 00/100
(RD$39,000,000,000.00) fully subscribed by the Dominican State.

Paragraph I.- The property of the Dominican State over the Reserve Bank of the Republic
Dominican Republic, Multi-Service Bank, will be recorded by means of stock certificates.
yes, whatever the form of increasing their capital, which will be kept in custody of
the National Treasury.

Paragraph II.- The increase of the capital of the Reserve Bank of the Dominican Republic, Bank of
Multiple Services must be deposited with the corresponding Commercial Registry in
a period no longer than three business days from the date of promulgation of this law.

ART.7.- The direction and administration of the Bank shall be in charge of:

a) The Board of Directors

b) An Executive Committee, composed of the General Manager of the Bank, the Deputy Manager-
for General, the secretary general, the Comptroller and the Administrator of the Main Office;

c) The General Manager of the Bank.

5
LAW OF MANAGEMENT, STATUTES, AND ADMINISTRATION.

ART.8.- The Board of Directors shall have supreme authority in the management and administration of
the business and private affairs of the Bank always adhering to the relevant laws and
the general rules issued by the Monetary Board regarding them.

ART.9.- (Modified by Art. 9 of Law 99-01 dated June 8, 2001). The Council of
The board of directors will be composed of nine (9) members, among which will be the secretary.
of Finance, ex officio, (5) who will preside over it, the Governor of the Central Bank of the
Dominican Republic, ex – officio (6), and the General Administrator of the Bank of Reserves of the
Dominican Republic.

The first two will participate with voice and vote in the ordinary and extraordinary sessions of
cited body and the last with voice, but without vote. In case of temporary absence or impediment
ment of the General Administrator of the Bank of Reserves of the Dominican Republic, hold-
the Deputy General Administrator will present his representation before the aforementioned Council.
league.

The remaining six (6) members, vocal members of the Council, must be of Dominican nationality.
and they will be appointed for fixed terms, each with a substitute, in the manner that to
continuation is expressed: Three (3) by the Executive Power and three (3) by the Monetary Board. The
appointments will be made for periods of three (3) years in a staggered manner, so that
Each year, one (1) of those appointed by the Executive Power is renewed and one (1) of the designated
two by the Monetary Board.

The appointments made to fill the vacancies that occurred before the expiration of a pe-
Determined unexpired period will be made in the previously established form and by him.

Operations, Services, Reserve Accounts and Utilities.

Article 26.- (12) The Bank shall have the authority to conduct general banking business, in accordance
with the relevant laws and with the regulations indicated by the Monetary Board, in accordance with
the Organic Law of the Central Bank of the Dominican Republic. Within such general authority and
without the following enumeration implying any limitation, said bank may.

A) Discount and negotiate promissory notes, drafts, bills of exchange, and other debt instruments;
buy, own and sell exchange, including futures exchange contracts; currency and metals price-
you are in trouble; lending money without real collateral or with collateral of other values or movable property
or real estate; receive deposits of money, securities, or other movable goods from any person
sound or entity with the conditions set by the Bank; and exercise all incidental powers
that were necessary to carry out banking business;

6
BANK OF RESERVES OF THE REPUBLIC
BANK OF RESERVES OF THE DOMINICAN REPUBLIC,
DOMINICAN REPUBLIC, BANK OF SERVICES
MULTIPLE SERVICES BANK
MULTIPLES
INCOME STATEMENT
STATEMENTS OF FINANCIAL POSITION
FROM JANUARY 1 TO MARCH 31, 2023
MARCH 31, 2023
(Values in DOP)
ASSETS (Values in DOP)
Cash y equivalents of Financial income
cash
Box 11,564,977,158
Interest on availabilities 1,111,755,346
Central Bank 163,581,930,746
Interest by credit portfolio 13,209,106,132
Banks of the country 3,628,704
Interest on investments 5,423,354,959
Foreign banks 41,285,071,919
Gains from investment sales 4,139,210,150
Cash equivalents 29,369,557,837
23,883,426,587
Receivables 19,878,725
Financial expenses
245,825,045,089
Interest on deposits (5,580,755,293)
Investments
Interest on financing (1,810,989,193)
Available for sale 322,593,992,261
Losses on investment sales (4,664,417)
Provisions for investments (36,074,344)
seven billion three hundred ninety-six million four hundred eight thousand nine hundred three
322,557,917,917

GROSS FINANCIAL MARGIN 16,487,017,684

Credit portfolio
Current 427,430,908,555 Provisions for loan portfolio (100,250,943)
Restructured 8,362,604,191
In arrears (31 to 90 days) 340,721,863 NET FINANCIAL MARGIN 16,386,766,741
Due (more than 90 days) 1,937,142,881
Judicial collection 37,652,964 Income (Expenses) from exchange rate differences (235,031,390)
Receivables 3,778,532,060
Provisions for credits 21,878,314,260 Other operating income
420,009,248,254 Fees for services 4,171,636,774
Commission for exchange 1,494,293,864
Debtors for acceptances 14,258,365 Various income 34,928,193
5,700,858,831
Accounts receivable 1,702,087,093 Other operational expenses
Commissions for services (659,751,783)
Assets received in credit recovery, net 37,618,744 Exchange commissions (16,695,315)
Various expenses (496,198,199)
Participation in other companies 1,172,645,297
Subsidiaries 19,139,081,775
Associated 1,826,251,238 GROSS OPERATING RESULT 20,679,948,885
Provisions (250,573,107)
20,714,759,906 Operating expenses
Salaries and compensations for staff (6,984,090,149)
Properties, furniture, and equipment, net 11,943,178,275 Third Party Services 1,365,804,045
Depreciations and Amortizations 478,802,221
Other assets Other provisions (69,023,913)
Deferred charges 9,820,609,849 Other expenses (4,986,859,493)
Intangibles 922,337,870 (13,884,579,821)
Diverse assets 775,204,250
11,518,151,969 NET OPERATING RESULT 6,795,369,064

TOTAL ASSETS 1,034,322,265,612 Other income (expenses)

Other income 613,827,222
Contingent accounts 56,937,216,114 Other expenses (386,390,146)
Order accounts 2,835,557,034,530 227,437,076

LIABILITIES AND EQUITY Gains (Losses) from shares in other companies 659,737,598
LIABILITIES
Public deposits RESULT BEFORE TAXES 7,682,543,738
In sight 158,023,714,660
Of saving 325,852,366,883 Income tax 606,500,001
On credit 304,682,468,787
Interest payable 921,455,954 RESULT OF THE EXERCISE 7,076,043,737
789,480,006,284

Deposits from financial entities in the country and abroad

Samuel Pereyra Rojas Henry V. Polanco Portes
From financial entities of the country 40,756,110,122
General Administrator Comptroller
Interest payable 209,933,431
40,966,043,553
This publication is made in accordance with the provisions of literal b) of Article 52 of the Monetary and Financial Law No. 183-
02
from November 21, 2002, and in compliance with Resolution No. 13-94 of the Superintendency of Banks on December 9
Borrowed funds 1994 and its amendments.
From the Central Bank 19,992,260,957 This publication is made in accordance with the provisions of Article 33 of the Organic Law of the Bank of Reserves No. 6133.
From foreign financial entities 65,222,616,060
Interest payable 1,906,454,495
87,121,331,512

Acceptances in circulation 14,258,365

Other liabilities 17,625,126,079

Comparable capital obligations

Subordinated obligations 20,408,260,841
20,408,260,841

TOTAL LIABILITIES 955,615,026,634

NET WORTH
Paid-up capital 39 billion
Heritage reserves 23,119,085,134
Surplus from revaluation 646,078,436
Accumulated results from previous exercises 8,866,031,671
Exercise results 7,076,043,737
TOTAL, NET WORTH 78,707,238,978

TOTAL, LIABILITIES AND EQUITY 1,034,322,265,612

Contingent accounts 56,937,216,114

Order accounts 2,835,557,034,530

Samuel Per
eyr a R ojas Henry V. Polanco Portes
General Administrator Comptroller

This publication is made in accordance with the provisions of paragraph b) of Article 52 of the Monetary and Financial Law.
No.
CONCLUSION

BanReservas provides a wide range of banking services to personal customers and

institutional, both in the public and private sectors, in order to promote the
economic development of the population in general and contribute to the execution of the plan
national strategic.

In this sense, it is one of the largest and most important pillars of the national economy.
being the bank of greatest systemic importance, since it represents the interests
of the same Dominican State.

International risk raters grant you a consolidated position as a strength.

As a leader in the industry, especially in the commercial segment, high diversification of pa-
liquid and favorable cash position benefited by managing the single fiscal account with
state courses and state property with a high probability of support in situations of
stress, and likewise anticipates the risks of it such as greater relative importance of colo-
commercial applications and high exposure to the public sector and structural rigidity to increase
hospital in case it is needed.

BanReservas has been part of the social and economic well-being of the country since 1941.
consolidated as the leading bank of the financial system and a driver of social development for
the different productive sectors, gaining international recognition of the
mainly gods of the industry and investment banks.

Finally, we can ascertain that Bareservas benefits from belonging

100% to the Dominican State. This gives it an advantage associated with the administration of the
state accounts and business with public entities, resulting in that he
weigh heavily in the national financial system.

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BIBLIOGRAPHY

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