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TOPIC 22THE FINANCIAL SYSTEM IN ECUADOR - Coggle Diagram
TOPIC 22THE 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.
CONSTITUTION OF THE FINANCIAL SYSTEM
Private Banks
They are the strongest institutions and cover the entire national territory.
Public Banks
Theymanagestate funds. Includes the Central Bank, State Bank, Development Bank
Mutualists
Financial institutions thatoffermortgage loansfor construction or home purchase.
Savings and Credit Cooperatives
They are smaller institutionsthatoffer small amountloans.
GEOGRAPHICAL LOCATION
Before the crisis of 1999, the financial centers were located in Guayaquil, today they have moved mostly to Quito.
LAST YEARS
They are followed by the Guayaquil Bank, Produbanco and Pacific Bank.
As a result of the crisis of 1999, the mutualistic and the financial societies, which in the past werenumerous, 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.
After the bad experience of the Deposit Guarantee Agency (AGD), the Financial Liquidity Fund has been created.
