Please enable JavaScript.
Coggle requires JavaScript to display documents.
THE FINANCIAL SYSTEM IN ECUADOR, image - Coggle Diagram
THE FINANCIAL SYSTEM IN ECUADOR
CONSTITUTION OF THE FINANCIAL SYSTEM
This system is made up of several types of institutions.
These are the main types of financial systems:
Private Banks: They are the strongest institutions and cover
the entire national territory.
Public Banks: Manage state funds. Includes the Center
Bank, State Bank, Development Bank,
Ecuadorian Housing Bank, Bank of the Pacific, etc.
Mutualists: Financial entities that offer mortgage loans for construction or home purchase.
Savings and Credit Cooperatives: These are smaller institutions that offer small amounts of loans.
THE FINANCIAL SYSTEM IN ECUADOR
The banks have taken over the
money from the public in exchange for a
interest. The bench
sector has expanded to more complex
operations such as foreign currency exchange, capital investments of companies,
collection payments, money transfers and virtual transfers.
The weight of the financial sector has been called the era of
domination of capital. The big banks have merged with financial companies, credit
cards, general insurance, brokerage firms, becoming a power of great
Economic importance.
GEOGRAPHICAL LOCATION
Before the crisis, the financial centers were located in Guayaquil, today
They have moved to Quito. The public banks remained unchanged, the ones that grew were the cooperatives.
LAST YEARS
Banco Pichincha is
the most powerful institution
country with the largest number of
deposits and assets. It is followed by the Bank of Guayaquil,
Produbanco and Bank of the Pacific. As for cooperatives, the geographical distribution
it is more homogeneous in the provinces. However,
there is a little more concentration in Pichincha.
As a result of the crisis of 1999, the mutual societies have diminished.
CONTROL OF THE FINANCIAL SYSTEM
Between 1999 and 2000, the public deposit guarantee system in
financial institutions were very incipient. So when the financial crisis
happened in Ecuador and the credit was given to private banks, through
institutions, the State had to pay a good part of the money that the citizens had
deposited in banks.
After the bad experience of the Deposit Guarantee Agency.
A Liquidity Fund has been created, whose objective is to provide
loans when financial institutions need it. For its part, the Insurance Corporation has the mission of protecting public deposits in
private financial institutions.
