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TOPIC 22 THE FINANCIAL SYSTEM IN ECUADOR - Coggle Diagram
TOPIC 22 THE FINANCIAL SYSTEM IN ECUADOR
1. THE FINANCIAL SYSTEM IN ECUADOR
Traditionally, banks have seized money from the public in exchange for interest.
Due to advancing business operations and technology, banking
The sector has expanded to more complex operations such as foreign currency exchange, company capital investments, payment of collections, money transfers and virtual transfers.
The weight of the financial sector has been denominated as the era of financial
capital domination.
2. 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
Manage state funds. It includes the Centro Banco, Banco del Estado, Banco de Desarrollo, Banco Ecuatoriano de la Vivienda, Banco del Pacífico, etc.
Mutualists
Financial entities that offer mortgage loans for the construction or purchase of housing
Savings and Credit
Cooperatives They are smaller institutions that offer small amount loans.
3. 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.
4. 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.
5. 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.
