Ecuador monetary sector could be reordered by law

This week, the Government proposed the draft Monetary and Financial Organic Code to the National Assembly. This seeks to reorder the monetary systems as value and insurance regimes of the country.

According to the Coordinating Ministry of Economic Policy, the Executive will propose 10 Essential axes. For example, to establish greater requirements to entities of the national financial system and a sanctions regime for those who breach the rules, with fines and the possibility of revoking the authorization to the offending entity.

The non-compliance would determine minor, serious and very serious penalties. The latter shall be punishable with fines of up to 0.01% of the assets of the offending entity, the removal of its directors and / or revocation of licenses.

For the former Superintendent of Banks, Alfredo Vergara, the purpose of the bill is to exercise greater control over the domestic financial sector entities, but notes that the existence of stability in this sector is not only to prevent a new banking crisis like the one occurred in 1999. “I consider that the monitoring to the financial system should not be given by policy decisions but rather by the law,” he said.