diff --git a/ibm_db_sa/ibm_db.py b/ibm_db_sa/ibm_db.py
index 9ddb9ae..1080a9f 100644
--- a/ibm_db_sa/ibm_db.py
+++ b/ibm_db_sa/ibm_db.py
@@ -119,7 +119,9 @@ class DB2Dialect_ibm_db(DB2Dialect):
     supports_statement_cache = True
     supports_sane_rowcount = True
     supports_sane_multi_rowcount = False
-    supports_native_decimal = False
+    # ibm_db binds Decimal as SQL_C_CHAR without a float conversion, and
+    # ibm_db_dbi returns Decimal for DECIMAL/NUMERIC columns.
+    supports_native_decimal = True
     supports_char_length = True
     supports_default_values = False
     supports_multivalues_insert = True
diff --git a/test/test_numeric.py b/test/test_numeric.py
new file mode 100644
index 0000000..b7be3eb
--- /dev/null
+++ b/test/test_numeric.py
@@ -0,0 +1,122 @@
+"""Exact numeric binding for the ibm_db DBAPI."""
+
+from decimal import Decimal
+
+from sqlalchemy import Column, DECIMAL, Float, Integer, Numeric, Table, select
+from sqlalchemy.testing import fixtures
+from sqlalchemy.testing.assertions import eq_
+
+from ibm_db_sa.ibm_db import DB2Dialect_ibm_db
+
+
+VALUES = (
+    Decimal("123456789012345.67"),
+    Decimal("123456789012345678901.1234567890"),
+    Decimal("-123456789012345678901.1234567890"),
+    Decimal("1E-10"),
+    Decimal("0"),
+    None,
+)
+
+
+class TestNumericBind(fixtures.TestBase):
+    def _check_bind(self, type_):
+        dialect = DB2Dialect_ibm_db()
+        processor = type_.dialect_impl(dialect).bind_processor(dialect)
+        for value in VALUES + (7, 1.25):
+            bound = processor(value) if processor else value
+            eq_(bound, value)
+            eq_(type(bound), type(value))
+
+    def test_numeric_bind(self):
+        self._check_bind(Numeric(31, 10))
+
+    def test_decimal_bind(self):
+        self._check_bind(DECIMAL(31, 10))
+
+    def test_numeric_as_float_bind(self):
+        # asdecimal controls results, not the precision of input parameters.
+        self._check_bind(Numeric(31, 10, asdecimal=False))
+
+    def test_numeric_results(self):
+        dialect = DB2Dialect_ibm_db()
+        for asdecimal in (True, False):
+            type_ = Numeric(31, 10, asdecimal=asdecimal).dialect_impl(dialect)
+            processor = type_.result_processor(dialect, None)
+            for value in VALUES:
+                result = processor(value) if processor else value
+                expected = value if asdecimal or value is None else float(value)
+                eq_(result, expected)
+                eq_(type(result), type(expected))
+
+    def test_float_results(self):
+        dialect = DB2Dialect_ibm_db()
+        type_ = Float().dialect_impl(dialect)
+        processor = type_.result_processor(dialect, None)
+        for value in (1.25, None):
+            result = processor(value) if processor else value
+            eq_(result, value)
+            eq_(type(result), type(value))
+
+
+class TestNumericRoundTrip(fixtures.TestBase):
+    __only_on__ = "ibm_db_sa+ibm_db_sa"
+    __backend__ = True
+
+    def _table(self, metadata, connection, type_):
+        table = Table(
+            "numeric_bind_exact",
+            metadata,
+            Column("id", Integer, primary_key=True, autoincrement=False),
+            Column("amount", type_),
+        )
+        table.create(connection)
+        return table
+
+    def _round_trip(self, metadata, connection, type_):
+        table = self._table(metadata, connection, type_)
+        # Exercise both execute and executemany, without casts or tolerances.
+        connection.execute(table.insert(), {"id": 0, "amount": VALUES[0]})
+        connection.execute(
+            table.insert(),
+            [{"id": i, "amount": value} for i, value in enumerate(VALUES[1:], 1)],
+        )
+        actual = (
+            connection.execute(select(table.c.amount).order_by(table.c.id))
+            .scalars()
+            .all()
+        )
+        eq_(actual, list(VALUES))
+        for value, result in zip(VALUES, actual):
+            eq_(type(result), type(value))
+        # Decimal-valued predicates must not round a filter parameter either.
+        for i, value in enumerate(VALUES[:-1]):
+            eq_(connection.scalar(select(table.c.id).where(table.c.amount == value)), i)
+
+    def test_decimal_round_trip(self, metadata, connection):
+        self._round_trip(metadata, connection, DECIMAL(31, 10))
+
+    def test_numeric_round_trip(self, metadata, connection):
+        self._round_trip(metadata, connection, Numeric(31, 10))
+
+    def test_dbapi_accepts_decimal(self, metadata, connection):
+        self._table(metadata, connection, DECIMAL(31, 10))
+        # Bypass SQLAlchemy type processors to verify DBAPI native support.
+        connection.exec_driver_sql(
+            "INSERT INTO numeric_bind_exact (id, amount) VALUES (?, ?)",
+            (0, VALUES[0]),
+        )
+        connection.exec_driver_sql(
+            "INSERT INTO numeric_bind_exact (id, amount) VALUES (?, ?)",
+            list(enumerate(VALUES[1:], 1)),
+        )
+        actual = (
+            connection.exec_driver_sql(
+                "SELECT amount FROM numeric_bind_exact ORDER BY id"
+            )
+            .scalars()
+            .all()
+        )
+        eq_(actual, list(VALUES))
+        for value, result in zip(VALUES, actual):
+            eq_(type(result), type(value))