The financial system in Ecuador, imagen - Coggle Diagram
The financial system in Ecuador
The financial sytem in Ecuador
Traditionally, banks have taken over the money from the public in excgange for an interest
The weight of the financial sector has been denominates as the era of fiancial capital domination.
Constitution of the financial system
This system is constituted by several types of institutions, both public and private.
These are the main types of financial systems:
Public Banks: They manage state funds.Incluides the central Bank, state Bank, Development Bank, Ecuadorian Housing Bank, Pacific Bank, etc
Mutualist: Financial institutions that offer mortagage loans for construction or home purcharse
Private banks: They are the strongest institutions and cover the entire national territory
Savings and Credit Cooperatives: They are smaller institutions that offer small amount loans.
Before the crisis of 1999, the financial centers were located in located in Guayaquil, today they have moved mostly to Quito. The public banks remained unchanged. The ones that grew were the cooperatives
At the end of the first decade of the 21st century, the pinchicha bank is the most powerful institution in the country with the largest asset deposits and assets
Produbanco and Pacific Bank. As for cooperatives
As a result of the crisis of 1999, the mutualistic and the financial societies, which in the past were numerous, have diminished.
Control of the financial system
Between the year 1999 and 2000, the guarantee system for public deposits in financial institutions was very incipient.
the State had to pay a good part of the money that the citizens had deposited in the banks
After the bad experience of the Deposit Guarantee Agency (AGD), the Financial Liquidity Fund has been created