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THE FINANCIAL SYSTEM IN ECUADOR - Coggle Diagram
THE FINANCIAL SYSTEM IN ECUADOR
THE FINANCIAL SYSTEM IN ECUADOR
Traditionally, banks have taken over the money from the public in exchange for an interest.
The weight of the financial sector has been denominated as the era of financial capital domination.
Large banks have merge with financial companies, credit cards, general insurance, brokerage houses, becoming a power of great economic importance.
CONSTITUTION OF THE FINANCIAL SYSTEM
Private Banks
They are the strongest institutions and cover
the entire national territory.
Public Banks
They manage state funds. Includes the Central Bank, State Bank, evelopment Bank, Ecuadorian Housing Bank, Pacific Bank, etc.
Mutualists
Financial institutions that offer mortgage loans
for construction or home purchase.
Savings and Credit
Cooperatives
They are smaller institutions that offer small
amount loans.
GEOGRAPHICAL LOCATION
Before the crisis of 1999, the financial centers were located in Guayaquil, today they have moved mostly to Quito. The public banks remained unchanged. The ones that grew were the cooperative
CONTROL OF THE FINANCIAL SYSTEM
Between the year 1999 and 2000, the guarantee system for public deposits in
financial institutions was very incipient.
For this reason, the State's control system over the financial system has been strengthened
After the bad experience of the Deposit Guarantee Agency (AGD), the Financial Liquidity Fund has been created, whose objective is to provide extraordinary loans when financial institutions need it.
With these new institutions we seek to create a safety net for the financial system and depositors or clients
