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Finance
*Source: Vistazo Magazine, Nº1034, September 2010
Changes in Small banks
The CAMEL Index of small banks has shown consid-
erable variation. This is why the bank that occupies
first place, is an institution that in December 2007
was ranked 7 and in March this year moved to fifth
position. At the end of the first sector, Banco Su-
damericano was declared to be leader of the group..
ProCredit Bank was 7th in March 2010 but later took
2nd position in June later in the year. Loja bank was
first in the rankings in December 2007 and in March
2011Unibanco has seen a steady decline in rankings
in recent months, between 2007 and 2010 it has slid
from third to eighth.
10 largest banks of the country*
PUBLIC BANKING: CREATION OF THE INTE-
GRATED DEVELOPMENT BANK
The Integrated Development Bank seeks an inte-
grated financial services sector incorporating public
banking and financial institution networks. This pro-
cess has been driven by the coordinating Ministry of
Economic Policy (MCPE).
The development bank will also ensure that public
banks become interconnected to a greater extent.
Furthermore, the Corporación Financiera Nacional
(CFN), the National Development Bank (BNF), the
State Bank and the Housing Bank will be integrated
so that citizens can benefit from reduced process
and transfer bureaucracy.
This system will join the Ecuadorian Institute for Edu-
cation Credit (IECE) which will enable the transfor-
mation of a consumer credit institution to an invest-
ment body. The Savings and Credit cooperatives will
also be integrated so they are closer to people in
rural areas.
Private banking consists of 1,167 agencies, branch-
es and window banks, compared to the smaller 936
of the public banks, which further underlines the dis-
jointed nature of banking channels in Ecuador.
According to the MCPE, public banks turned over
USD$884 million in 2008, USD$1,045 million in 2009
and USD$789 million in June 2010.
Insurance sector
The utilities sector of the private insurance market in
Ecuador grew by 15% and net premiums uptake in-
creased by 8% between September 2008 and Sep-
tember 2009 as a result of the introduction of new
products and services.
Total market premiums rose from USD$656.1
to 708.5 millionand technical utilitiesrose from
USD$43.9 to 50.6 million between 2008 and 2009
after increased revenues and expenditures.
According to the “Superintendencia de Bancos y Se-
guros” there are a total of 43 banks in the country,
2 of which are public. Within the private insurance
sector, 6 of the main companies are international:
American Home, Cigna, Mapfre, Coface, Norwich
Union and Pan American Life. This highlights the
international interest that lies in the Ecuadorian mar-
ket. There are other international brands but they are
considered as nationals such as Generali or AIG.
Banco Solidario
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