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Topic 22: Ecuador's Financial System - Coggle Diagram
Topic 22: Ecuador's Financial System
CONTROL OF THE FINANCIAL SYSTEM
Between the year 1999 and 2000, the guarantee system for public deposits in
financial institutions was very incipient. For this reason, when the financial crisis
occurred in Ecuador and the credit was given to private banks, through public
institutions, the State had to pay a good part of the money that the citizens had
deposited in the banks, whose directors did not take responsibility for it. For this
reason, the State's control system over the financial system has been
strengthened.
Traditionally, banks have taken over the
money from the public in exchange for an
interest. Due to the advance of commercial
operations and technology, the banking
sector has expanded to more complex
operations such as foreign currency exchange, equity investments of companies,
payments for collections, money transfers and virtual transfers.
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
