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ECUADOR'S FINANCIAL SYSTEM - Coggle Diagram
ECUADOR'S FINANCIAL SYSTEM
SKILL: To analyze the role of the financial sector in the country and the need for its control by society and the state.
THE FINANCIAL SYSTEM IN ECUADOR
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.
Traditionally, banks have taken over the money from the public in exchange for an interest.
CONSTITUTION OF THE FINANCIAL SYSTEM
These are the main types of financial systems:
Public Banks
They manage state funds. Includes the Central
Bank, State Bank, Development Bank, Ecuadorian Housing Bank, Pacific Bank, etc.
Mutualists Financial
institutions that offer mortgage loans
for construction or home purchase. Savings and Credit
Private Banks
They are the strongest institutions and cover
the entire national territory.
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.
LAST YEARS
As for cooperatives, the geographical distribution is more homogeneous in the provinces, both coastal and mountain.
As a result of the crisis of 1999, the mutualistic and the financial societies, which in the past were numerous, have diminished.
At the end of the first decade of the 21st century, the Pichincha Bank is the most powerful institution in the
country with the largest asset deposits and assets.
CONTROL OF THE FINANCIAL SYSTEM
For this reason, the State's control system over the financial system has been strengthened.
With these new institutions we seek to create a safety net for the financial system and depositors or clients.
Between the year 1999 and 2000, the guarantee system for public deposits in financial institutions was very incipient.
