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THE FINANCIAL SYSTEM IN ECUADOR - Coggle Diagram
THE FINANCIAL SYSTEM IN ECUADOR
THE FINANCIAL SYSTEM IN ECUADOR
Traditionally, banks have taken over the
money from the public in exchange for an nterest. 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
CONSTITUTION OF THE FINANCIAL SYSTEM
These are the main types of financial systems:
amount loans.
They are smaller institutions that offer small
Cooperatives
Savings and Credit
for construction or home purchase.
Mutualists Financial institutions that offer mortgage loans
Ecuadorian Housing Bank, Pacific Bank, etc.
Bank, State Bank, Development Bank,
They manage state funds. Includes the Central
Public Banks
the entire national territory.
Private Banks They are the strongest institutions and cover
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.
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 nstitutions, 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.