Non-monetary financial

intermediaries.
NON-MONETARY FINANCIAL INTERMEDIARIES (ASTRID PERALTA
REYES)
They are institutions that receive savings and time deposits, regularly and systematically
dedicating themselves to granting loans of funds from their own resources, from the
Central Bank, from commercial banks and from the public. They include public
development institutions, mortgage banks, savings and loan associations and
development banks.

DISTINCTION BETWEEN NON-MONETARY FINANCIAL

INTERMEDIARIES.
Like commercial banks, these institutions provide credit to businesses, consumers, and
the government, and create liquid assets for the public. Unlike commercial banks, they do
not create means of payment in the course of their operations and are not directly subject
to the control of the central bank.

It is important to highlight the relevance that non-monetary financial intermediaries have

acquired in recent years, particularly since the mid-1950s, a period in which economists
J. g. Gurley and E. S. Shaw, in an article that appeared in September 1955 in the
American Economic Review entitled “Financial Aspects of Economic Development,”
drew the attention of students of credit phenomena to the growing boom in investments
made by this type of institutions, which can attenuate the effects of traditional credit
control measures on so-called deposit banks or ordinary credit banks (commercial banks,
as they are commonly known); The application of monetary controls to commercial
banks has been based fundamentally on the capacity of these institutions to supply means
of payment to the economy, other than metallic coins and banknotes. Therefore, it is
logical that credit control has traditionally been neglected for financial intermediaries
lacking these characteristics, which are limited only by raising resources through the
issuance of non-monetary debt securities to be returned to the system. economic the funds
raised in the market, carrying out, at first glance, only an elementary transfer of
purchasing power.

_________________________

ASTRID PERALTA REYES (14-SCTT-6-051)

OBJECTIVES THAT HAVE MOTIVATED ITS CREATION (RUTH E.
MARTINEZ)

There are many experiences that each country has had trying to find a solution to the
problem of financing economic development.

In Latin America, between the 1920s and 1930s, many countries made an effort to
organize their central banking, after experiencing the harsh consequences of a situation of
monetary anarchy. But later, between the years 1930 and 1940, mortgage banks and
specialized institutions began to appear in those countries, each of them trying to solve
some partial problem of the financial mechanism. Currently, the fever of institutions has
spread in Latin America towards the need to create specialized private financial
companies.

In most countries, the creation of these institutions was intended to fill the gap in
obtaining medium and long-term credits, which would be provided to sectors considered
of national interest.

This type of credit was not provided by commercial banks, which channeled most of their
resources over relatively short terms, and to basically commercial sectors.

____________________________________

RUTH ESTHER MARTINEZ

13-ECTN-6-045
CLASSIFICATION OF NON-MONETARY FINANCIAL
INTERMEDIARIES (PAMELA I. PEREZ MELO)

Non-monetary financial intermediaries are classified into:

Private and Public Banking:

• Investment banks.
• Savings banks.
• Development banks.

-Investment banks: Assists individual clients, private companies and governments to

obtain capital, through underwriting and/or becoming the client's agent for the
issuance and sale of securities in the capital markets.
-Savings banks: financial institution whose main function is to store savings bank
deposits. Also known as Savings and Loan Association.
-Development Banks: Financial Institution that aims to finance the preparation and
execution of Investment projects, Operating Expenses or Investment in Capital Goods,
also including the provision of technical assistance for these projects .

Non-Banking:
• Private {Insurance companies, finance companies}
• Public {Social security institutions, national insurance companies}
Non-monetary financial intermediaries mentioned, but not limited to, are:
a) Mutual savings banks.
b) Postal savings. g) National savings institutions.
c) Capitalization companies or
banks. h) Credit unions or savings banks.
d) Savings and loan societies. i) Social security institutions.
e) Mortgage banks and financial j) Mutual funds or investment
corporations. companies.
f) Life insurance companies. k) Trust institutions.

_________________________________
PAMELA I. PEREZ MELO
14-SCTT-6-038
FUNCTIONS OF NON-MONETARY FINANCIAL INTERMEDIARIES
(AIDA M. SAINTS)

*Banks or savings departments:

They receive savings and term deposits, which generally belong to the middle class and the
relatively low-income group. The success in training these resources has depended in many cases
on an active policy to search for and train savers rather than passively waiting for these people to
arrive at the bank window.

*Capitalization companies or banks.

The collection of savings through this system is done through certain instruments known as
“capitalization policies, capitalization securities, and capitalization certificates; These are an
organized and methodical form of savings, through which a considered sum of money is
accumulated through one or several regular deposits according to the goals or needs that need to
be covered. Generally, the use of these reserves is subject to government regulations that indicate
the proportions in which said funds must be invested, among which are mortgage loans,
government bonds, industrial bonds issued by private activity, etc...

*Savings and loan banks.

These institutions had their origin in the establishment of cooperatives for the construction of
homes, their main function consists of collecting periodic savings, until forming a personal fund
of a certain magnitude, after which the right to receive a loan for an amount equal to a multiple
of the amount of savings established. Apart from the resources obtained through savings and
loan contracts, these institutions receive additional resources through the placement of savings
bonds and through the acceptance of pure or simple savings deposits.

_________________________________

AIDA M. SAINTS

14-SAET-6-
MORTGAGE BANKS AND FINANCIAL CORPORATIONS (YISAIRIS
ORTIZ)

The creation of these institutions was intended to fill the gap in the financing of medium
and long-term credits, as well as the need to find an investment mechanism for long-term
securities.

Mortgage banks
Mortgage banks are the set of entities,
institutions or corporations that are responsible
for receiving savings from people (this activity
is called fundraising) and making loans to
them (this activity is called placement of
funds). It is important to highlight that these
loans are secured by mortgages on property.
Mortgage banks served for a long time as an
instrument to provide some solution to the housing problem. Mortgage Banks are credit
institutions, whose foundations began to be formed several centuries ago. They obtain
funds through the issuance of mortgage bonds, savings bonds, acceptances of savings
deposits and others.

Currently there are few mortgage banks, among which are Banesco, Inverbanca, Banco
Latinoamericano, CA, etc., these are in charge of granting loans with mortgage
guarantees and carrying out operations and financial services compatible with their
nature.

FINANCIAL CORPORATIONS.
They are those financial institutions that deal with collecting term resources, through
deposits or term debt instruments that are then invested in credit operations or
investments.

The fundamental purpose of financial corporations is the mobilization of resources and

the allocation of capital to promote the creation, reorganization, merger, transformation
and expansion of any type of companies, as well as to participate in their capital...

promote the participation of third parties, provide them with medium and long-term
financing and offer them specialized financial services that contribute to their
development.

These emerged primarily as an instrument to finance the medium and long-term credits
necessary for industrialization. Their main objective is to
raise resources on terms through deposits or term debt
instruments, in order to carry out active credit operations
and make investments.

LIFE INSURANCE COMPANY

Life insurance companies were created
especially as pension institutions, which sell
certain contracts to accumulate savings for
policyholders, whose purpose is to cover
future eventualities or, upon maturity of the
contracts themselves, to return the savings
with their respective interests. accumulated.
The savings accumulated in the form of mathematical reserves of life insurance companies can
become a very significant resource to finance investment in a country. Almost generally, the
reserves of life insurance companies are subject to investment in destinations established by
government regulations.

_________________________________
YISAIRIS ORTIZ
SOCIAL SECURITY (MARIA A. MORILLO CONTRERAS)

LAW 87-01

Purposes of Law 87-01. That the state stimulate the progressive development of social
security. May the tripartite dialogue achieve notable progress. That it is urgent to provide
the country with a public protection system. That there is a national consensus that the
best social security system is the one that guarantees the greatest collective family and
personal protection.

CONTRIBUTIVE FINANCING REGIMESSUBSIDIEDCONTRIBUTIVE

SUBSIDIED.
CONTRIBUTIVE • Public and private salaried workers and employers, financed by
workers and employers, including the State as employer

SUBSIDIZED• Self-employed workers with unstable incomes below the national

minimum wage, as well as the unemployed, disabled and indigent, financed mainly by
the Dominican State.

SUBSIDIZED CONTRIBUTORY • Independent professionals and technicians and self-

employed workers with average income equal to or greater than a national minimum
wage, with contributions from the worker and a state subsidy to make up for the
employer's shortfall. Note: this regime has not yet come into effect. in the Dominican
Republic.
BENEFITS OF EACH REGIME

CONTRIBUTIVE• Old Age, Disability and Survival Insurance• Family Health

Insurance• Occupational Risk Insurance for work accidents and occupational diseases

SUBSIDIZED AND CONTRIBUTORYSUBSIDIZED• Old Age, Disability and Survival

Insurance• Family Health Insurance
Article 5 of Law 87-01 establishes that all Dominican citizens and legal residents in the
national territory have the right to be affiliated with the Dominican Social Security
System (SDSS).

__________________________
MARIA MORILLO CONTRERAS
14-MCTT-6-026
Art. 1.- Object of law 87-01 of the Dominican social security system
(MELISSA GARCIA)

The purpose of this law is to establish the Dominican Social Security System
(SDSS) within the framework of the Constitution of the Dominican Republic, to
regulate it and develop the reciprocal rights and duties of the State and citizens
regarding financing for protection of the population against the risks of old age,
disability, unemployment due to advanced age, survival, illness, motherhood,
childhood and occupational risks.
The Dominican Social Security System (SDSS) includes all public, private and
mixed institutions that carry out main or complementary social security
activities, physical and human resources, as well as the rules and procedures that
govern them.

The institutions that structure the Dominican social security system

are the following:

The national social security council

The social security treasury

The information and defense department for social security affiliates

The superintendence of health and occupational risks

The pension superintendence

SENASA social insurance

Occupational risk management

Administration with pension funds

Services offered

Public, private and mixed for-profit or non-profit entities that perform

complementary functions to social security.
COMPOSITION OF THE NATIONAL SOCIAL SECURITY COUNCIL.

The National Social Security Council is responsible for establishing policies,

regulating the operation of the system and its institutions, guaranteeing the
extension of coverage, defending the beneficiaries, as well as ensuring
institutional development, the integrity of its programs and the financial balance
of the SDSS.

The National Social Security Council will be made up of:

The Secretary of State for Labor, who will preside over it.

The Secretary of State for Public Health and Social Assistance, Vice-President.

The Director of the Institute of Aid and Housing (INAVI)

The Governor of the Central Bank

A Representative of the other Health Professionals and Technicians

Three Employer Representatives, chosen by their sectors.

Three Workers Representatives chosen by their sectors.

A Representative of Professionals and Technicians, chosen by their sectors.

A Representative of the Disabled, Indigent and Unemployed.

A Representative of Microenterprise Workers.

________________________________________
MELISSA GARCIA MONTERO
14-sctt-6-034
MUTUAL FUNDS OR INVESTMENT COMPANIES (TIFFANY N. KINGS
D.)

These institutions were originally established in Belgium, in 1822 and imitated in France
and Switzerland, constitute an instrument for collecting savings from the high-income
middle class, with the purpose of investing them in diversified investment plans in
securities. Generally, the portfolio of mutual funds or investment companies is made up
of both fixed-income securities and variable-income securities. A special feature of these
institutions is the guarantee of liquidity.

TRUST INSTITUTIONS:

The trust is the act by which one or several people, called

trustors, transfer property rights or other real or personal
rights, to one or several legal persons, called fiduciaries,
for the constitution of a separate estate, called trust estate,
whose administration or exercise of the trust will be
carried out by the trustee or trustees according to the
instructions of the trustor or trustors, in favor of one or
several people, called trustees or beneficiaries, with the
obligation to return them upon the extinction of said act, to the person designated therein
0 in accordance with the law.

Law 189-11, for the development of the mortgage and trust market in the
Dominican Republic.
Aim. The purpose of this law is to create the necessary legal figures and strengthen the
existing ones, to be able to develop the Dominican mortgage market, channeling
voluntary or mandatory savings resources, for long-term financing of housing and
construction in general, deepening the Market of capital with the expansion of
alternatives for institutional investors and promoting the use of debt instruments that
facilitate said channeling, which, together with the creation of special incentives, State
contributions and process economies, serve to promote housing projects, especially low-
cost ones, such as encouraging savings for the purchase of homes by the population, in
order to mitigate the significant housing deficit in the Dominican Republic.

__________________________

TIFFANY N. KINGS DAVID

14-SCTT-6-035
Low-Cost Housing Trust Act.

On Tuesday, November 17 of this year, the Senate approved in a single

reading the bill for the Low-Cost Housing Trust in the Dominican Republic
(VBC RD Trust), with which the government builds the Juan Bosch City.

The initiative contemplates that the homes cost between 950 thousand and
2.4 million pesos, discounting the benefits of bonds, land and ITBIS, which
represents 10% of the cost of the property.

The homes will be financed for 20 years at a rate of no more than 8% during
that period of time.

President Danilo Medina reported on November 18 that the housing supply

market for the year 2016 will rise to 62,180 units, which he described as a
figure never seen in the history of the Dominican Republic. The president
said that this will be possible thanks to the show of confidence of housing
project developers based on the efforts that have been deployed for the
application of the trust law. He expressed that for this offer to reach citizens
who need their first home, they must also be helped, which is why he has
further expanded the incentives established by Law 189-11, in favor of home
buyers.

President Medina argued that 2015 has been an eventful year for the housing
sector, but that perhaps it will be next year when the majority of the
population will truly perceive the changes in the housing market. He
expressed that it has been this year when alliances have been established
and tools have been created and the machinery of the upcoming
transformation has been launched; “That is why I am sure that 2015 will be
remembered as the beginning of the end of the housing deficit in the
Dominican Republic,” he said.

The bicameral commission of the National Congress that is in charge of studying the trust bill for
low-cost housing in the Dominican Republic (VBC RD Trust), under which the Government
builds Juan Bosch City, agreed to submit a favorable report to the piece during the next session.

______________________

LINETTE N. JAVIER
ANALYTICAL STRUCTURE OF THE MAIN ITEMS OF THEIR
BALANCE SHEET (KATHERINE ARNAUD)
Main items of assets and liabilities of non-monetary financial intermediaries, classified
analytically, are shown below:

Pasivos Internacionales a
De origen Externo mediano y largo plazo
(RM3)
Pasivo

Cuentas de ahorros (CD3)

Certificados de Depositos (CD3)
Valores y titulos emitidos (CD3)
De origen Interno Capital con el Banco Central (RB3)
Capital y Reservas (OA3)

Otros pasivos sin clasificar (OA3)

Activos
De origen Externo Internacionales
(RM3)

Efectivo En Caja
(LB3)
activo

En Moneda
Nacional Depositos en
Bancos
Comerciales (DB3)

De origen Interno Gobierno (FG3) Agropecuaria

Inversiones en
valores, descuentos Industrial
y creditos Sector Privado
(FP3) Fomento de
exportaciones
Otros activos sin Construccion
clasificar (OA3)
BALANCE SHEET STRUCTURE: ANALYSIS OF ITS COMPONENTS
AND GENERAL VALUATION CRITERIA
The balance sheet is made up of two large blocks:

 ACTIVE , economic status. State investments.

 LIABILITIES , funds to acquire investments.
AP= NET EQUITY

THE FUNDAMENTAL EQUATION OF THE BALANCE SHEET.

A=P+N

All of the company's assets are financed by resources provided by companies or by

resources provided by third parties.

The entire Liability plus Net finances the Assets.

All assets have a financial characteristic associated with their own nature:

 ASSET ELEMENTS, the implicit condition of being elements that become liquid
over time is attributed to them and is the end of the elements. Some items take
longer to convert to money, which causes a classification:
 L/P Investments
 Investments C/P
This depends on the degree of availability.

 LIABILITIES ELEMENTS, liability items become payable over time. A liability

item that matures before another has a higher degree of demandability.
THE ORDER:

The ASSET will be placed from lowest to highest availability.

The LIABILITIES will be placed from lowest to highest demandability.

Glossary of terms

Non-Monetary Financial Intermediaries : Institutions that receive savings and time

deposits, regularly and systematically dedicating themselves to granting loans of funds
from their own resources, from the Central Bank, from commercial banks and from the
public. They include public development institutions, mortgage banks, savings and loan
associations and development banks.

Monetary Issuance : Banknotes and coins put into circulation by the Central Bank, as
well as demand and special deposits in national currency in the Central Bank.

International Assets : Deposits or securities in gold and foreign currencies in favor of

the banking system, both in the country and abroad.

International Liabilities : Obligations of the banking system in foreign currency in favor

of individuals or legal entities residing abroad.

Other Banking and Non-Banking Financial Institutions : Established by public and

private development entities, which, like commercial banks, also issue liquid obligations
and other deposit substitutes, and by other institutions considered non-banking because
they are dedicated to financial activities. commercial.

Monetary Financial Intermediaries : Institutions that receive demand, savings, time and
special deposits, regularly and systematically dedicating themselves to granting loans of
funds from their own resources, from the Central Bank and from those obtained from the
public in the form of deposits, securities or other obligations. They include all
commercial and multi-service banks.

Financial System : Composed of the Central Bank, monetary financial intermediaries

and non-monetary financial intermediaries.

______________________
KATHERINE ARNAUD.
14-SCTT-6-050

Origin and characteristic of his liabilities (YOSMAIRY TORRES VICENTE)

Both the magnitude and the origin of the resources of non-monetary banking institutions
have a direct influence on the activities to be carried out in the immediate future.
It is natural that it is an initial period with little income and no profits, coexistence lies in
obtaining liabilities in greater proportions of the capital will come from the government,
which must be possible at a lower cost than the current cost of money. This is so, since
in reality it is likely that the initiative to create an institution of this nature will come from
the governments, as part of a policy to stimulate private investment.

Government financing can take the form of shares with or without voting rights, and
loans. Which form prevails depends primarily on the government's decision about its role
in managing the institution and the effects that decision may have on the private sector.

Now, if you really want to maintain a sufficient amount available for long-term
investments, an effort will be made to incorporate capital from the private sector.
Government resources would be used only to cover the difference between what can be
obtained from private sources and the amount considered necessary for the institution to
be viable and effective.

Liabilities include present obligations arising from past operations or transactions, such
as the acquisition of goods or services, losses or expenses incurred, or obtaining loans to
finance the goods that constitute the asset.

_____________________________

YOSMAIRY TORRES VICENTE

14-SCTT-064

CONTINUATION OF THE TOPIC: ORIGIN AND CHARACTERISTICS

OF HER LIABILITIES (JUANA ADON MARTE)
Under appropriate conditions and with adequate stimuli it is possible to attract private
capital, mainly in banks and other financial institutions that provide a large part of the
capital contributions of most development banks.

Most development banks are authorized to obtain loans from internal private sources, but
fortunately in many countries it is very difficult to sell bonds or other types of securities,
since the investing public always insists on trust, profit and liquidity. , not always present.
Even so, there is this mechanism that provides additional resources.

Direct financing by the Central Bank, particularly on a continuous basis, through

advances and rediscounts, is open to these institutions, but the feasibility of financial
attribution will be made in light of the requirements of monetary policy, which is not
ensures that it is neither large nor effective.

Likewise, they can obtain capital from abroad, sometimes in the form of contributions,
but more frequently as loans. In reality, in some Latin American countries development
banks were established so that foreign governments had a more or less public institution
through which they made loans for specific projects. Current sources of foreign capital
include, among others, the International Bank for Reconstruction and Development
(BIRD), and the Inter-American Development Bank (IDB).

PURPOSES PURSUED IN THE CHANNELS OF CREDIT (ROSA MARIA

MIESES SOTO)

THE PURPOSES PURSUED BY DEVELOPMENT INSTITUTIONS IN THE

DIRECTION OF THEIR RESOURCES

FINANCIAL IS THAT THEY CONTRIBUTE TO DEVELOPING ECONOMIC

SECTORS CONSIDERED OF

NATIONAL INTEREST, AND THEY DO NOT HAVE SUFFICIENT FUNDS.

____________________________
ROSA MARIA MIESES SOTO
14-MCTT-6-02