The Dominican financial system includes commercial banks, mortgage banks, savings and loan associations, and development banks. The Central Bank regulates the money supply and controls official foreign exchange reserves.
Commercial banks are the main formal sources of private sector financing.
Mortgage banks traditionally have provided medium and long-term loans for the construction and tourism sectors. However, due to the uncertain lending environment, medium-term, and annually renegotiated loans are most common. Foreign lending to the private sector is uncommon. Development banks, both public and private, offer medium and long term loans to finance projects in priority sectors, including agriculture, tourism, industry, services, and transportation. These companies provide loans when commercial banks are unable or reluctant to do so.