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THE FINANCIAL SYSTEM IN ECUADOR - Coggle Diagram
THE FINANCIAL SYSTEM IN ECUADOR
CONSTITUTION OF THE FINANCIAL SYSTEM
This system is constituted by several types of institutions, both public and private.
These are the main types of financial systems:
Private Banks:
They are the strongest institutions and cover
the entire national territory.
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 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.
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, the Pichincha Bank is the most powerful institution in the country with the largest asset deposits and assets.
They are followed by the Guayaquil Bank, Produbanco and Pacific Bank.
As for cooperatives, the geographical distribution is more homogeneous in the provinces, both coastal and mountain. However, there is some more concentration in the Pichincha.
As a result of the crisis of 1999, the mutualistic and the financial societies, which in the past were numerous, have diminished.
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 payments for collections, money transfers, virtual transfers, etc.
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, etc.
CONTROL OF THE FINANCIAL SYSTEM
Between 1999 and 2000 the financial crisis occurred, which caused the bank holiday, which caused all banks to be paralyzed, keeping people's money inside, when those people died their money stayed in their bank accounts and that later was handed over to the government or the president of that time Jamil Mahuad.
