Ecuador showed a slight reduction in their banking service fees (August, 2019)

The Ecuadorian government ordered last month (June 2019), to reduce the banking service fees in the country. At the beginning of August, banks began to manage the fee reduction of these services, although most of them still do not show changes in their prices.

Among the most important changes imposed by the Monetary and Financial Regulation Board, is the maximum amount that a person can be charged for using multiple times the same service per month. On July, the governing entity observed that banks obtained less income, for about  three and a half million dollars in profit loss (if calculated by the year). Although this seems to be a good start in the well-being of the final users, banks are still generating 39 million profits per year.

The Monetary and Financial Regulation Board expects that in the coming months, banks will adjust more their fees. Andrés Vergara, a financial analyst, shares his view that if banks start losing their income, then they will simply start charging more interest on their loans to compensate.

The Association of Private Banks of Ecuador (Asobanca) expects banking services to be reduced by a total of $ 15 million per year by the beginning of 2020.

Source: El Comercio