Please enable JavaScript.
Coggle requires JavaScript to display documents.
TOPIC 22 THE FINANCIAL SYSTEM IN ECUADOR - Coggle Diagram
TOPIC 22 THE FINANCIAL SYSTEM IN ECUADOR
THE FINANCIAL SYSTEM IN ECUADOR
Traditionally, banks have taken over the money from the public in exchange for interest The weight of the financial sector has been denominated as the era of financial capital domination
CONSTITUTION OF THE FINANCIAL SYSTEM
This system is constituted by several types of institutions, both public and private.
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.However,
there is some more concentration in the Pichincha.
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, the State's control system over the financial system has been strengthened. 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 With these new institutions we seek to create a safety net for the financial system and depositors or clients