Banks request to be allowed to have greater reserves to face additional external shocks

The executive director of the Association of Private Banks of Ecuador, Cesar Robalino, said that “banking continues being isolid, solvent and with sufficient liquidity resources,” he said in spite of macroeconomic problems faced by Ecuador and the weakness certain companies from the productive sectors show.

According to Robalino, private banking has been prepared in this way to absorb shocks. And this is possible thanks to the high competition, professionalism, seriousness in the assessing of credit risk developed by the administrators of Ecuador’s private banks.

He explained that credit expansion has been decreasing, and the origin of this is because the evolution of deposits -the most important source of funding of the banking, has been decelerating slowly and gradually by factors beyond the bank, and that has to do with the macroeconomic problem Ecuador faces.