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Finance
Overview
In 2008, the financial sector accounted for 2.4% of
GDPwith a total of 1,261 million dollars. This sector was
consolidated by the dollarization of the country after the
severe crisis of 1999 when many financial institutions
went bankrupt and were there subject to government
bailouts. The low level of domestic savings, high admin-
istrative costs and the high interest rates have made
the Ecuadorian financial sector somewhat complex.
Growth in this sector has never been exponential, but
it has been steady as a result of a new Finance Act,
which allows segmentation of credit and interest rate
differentials.
According to a report by the Association of Private
Banks of Ecuador (ABPE), after the first half of the
year, total deposits in private banks registered an in-
crease of USD$ 997 million with a closing balance of
USD$14.575 million whilst savings deposits continued
to rise and closed with a balance of USD$4.101 billion,
representing an increase of USD$875 million.
Similarly, the same trend could be seen with monetary
deposits. Compared to June 2009, monetary deposits
increased by 17.19%, an increase of $896 million on
the previous year. This behaviour is partly explained
by the apparent revival of some of the labour intensive
economic sectors. Investment demand has increased
which has resulted in reduced deposits and the expan-
sion of credit lines.
Term deposits are not far behind these figures, since
between June 2009 and June 2010 they reached a
growth rate of 16.17%. Private banking saw consider-
able growth bring the figure to $4,369 billion. Regarding
the structure of term deposits during the first six months
of the year, the participation of these (the deposits) with
a maturity greater than 361 days was located at 3.17%,
while 34.82% were term deposits of less than 90 days
and over 31 days. The 20.45% corresponds to deposits
with terms longer than 90 days and less than 181 days,
therefore, the sum of deposits with terms greater than
180 days represent 11.75% of the total.
Credit Destination
By June 2010, credits for industry and other productive
sectors were the most demanding; hence, their par-
ticipation in the Loan Portfolio (including contingencies)
was 52.4%. This was followed by consumer credits,
with 28.3% of the portfolio in the private banking sys-
tem, while 11.9% corresponds to the accommodation
sector and 7.4% to Microenterprise. Between June
2010 and June 2009, credits for housing saw a slight in-
crease of $106 million, implying a growth rate of 8.72%,
leaving the balance of the Housing portfolio at $1.319
million in June 2010. Total arrears in payments within
the private banking system, on June 2010, showed a
reduction of 0.3 percentage points going from 3.36%
to 3.06% in response to the decreasing trend in all eco-
nomic segments in the first half of 2010.
Therefore, the slowness in payments in the Consumer
and Microcredit sectors decreased by 0.38 percentage
points which makes the private banking system remain
the lowest in the national financial system with a growth
rate of 3.06%.
This is corroborated by the fact that between June
2010 and June 2009, nonperforming loans decreased
in the following segments: Sales (USD$625 thousand),
Consumption ($2.2 million) and Microcredit (USD$19.9
million). However, not in the Housing segment where
there was an increase of USD$2.8 million.
Thousands of dollar
Banks Jun. 09 Jun. 10
Pichincha
Pacífico
Guayaquil
Produbanco
Bolivariano
Internacional
Austro
Machala
Prómerica
Citibank
Gral.Rumiñahui
Loja
3.423.761
1.329.418
1.191.579
1.131.963
910.475
868.384
427.847
246.435
245.360
215.209
211.590
151.946
2.767.869
950.697
1.087.470
1.000.886
731.013
710.403
337.770
215.822
231.945
250.585
168.887
112.349
Even in smaller cities is common to have ATMs
Lloyds Bank
ProCredit
Solidario
Amazonas
Unibanco
Territorial
Comercial de Manabí
Litoral
Delbank
Capital
Cofiec
Sudamericano
Finca
Total
75.094
74.714
38.125
33.098
25.962
25.036
22.232
15.005
6.362
5.237
3.771
1.846
897
10.681.345
68.150
53.826
35.986
30.581
18.594
28.405
18636
10.322
4.132
3.174
1.412
1.622
267
8.840.802