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TOPIC 22 THE FINANCIAL SYSTEM IN ECUADOR - Coggle Diagram
TOPIC 22 THE FINANCIAL SYSTEM IN ECUADOR
THE FINANCIAL SYSTEM IN ECUADOR
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.
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.
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, whose objective is to provide extraordinary loans when financial institutions need it.
On the other hand, the Deposit Insurance Corporation has the mission of protecting the deposits of the public in private financial institutions.
With these new institutions we seek to create a safety net for the financial system and depositors or clients.
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 a result of the crisis of 1999, the mutualistic and the financial societies, which in the past were numerous, have diminished.
CONSTITUTION OF THE FINANCIAL SYSTEM
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.