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Topic 22. Financial System - Coggle Diagram
Topic 22. Financial System
Vocabulary
1. Financial Capital:
Sum of money that is placed in an institution for interests or returns.
2. Financial System:
Set of institutions that channel the money saved towards loans.
3. Currency:
a system of money in general use in a particular country.
4. Payment:
the action or process of paying someone or something or of being paid.
5. Brokerage houses:
place where agents work in negotiating contracts, purchases, sales and conducts a business.
6. Loan:
a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.
THE FINANCIAL SYSTEM IN ECUADOR
Traditionally, banks have taken over the public's money in exchange for an interest. Due to the advancement of commercial operations and technology, the banking sector has expanded into more complex operations such as foreign currency exchange, capital investment of companies.
CONSTITUTION OF THE FINANCIAL SYSTEM
Private Banks, Public Banks, Mutualists and Savings and Credit
Cooperatives
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 cooperatives.
LAST YEARS
At the end of the first decade of the 21st century, Banco Pichincha is
the most powerful institution country with the largest active deposits and assets. They are followed by Banco de Guayaquil, Produbanco and Banco del Pacífico.
Between 1999 and 2000, the public deposit guarantee system in
financial institutions was very incipient. So when the financial crisis occurred in Ecuador and credit was given to private banks, through institutions, the State had to pay a large part of the money that citizens had deposited in banks, whose directors did not take care of it.
