Ecuadorian Banking Increases its Obligations

The Banking Board will have tighter control of granting credits by informing people

The Banking Board insists that the country’s financial system must improve in order to prevent more families from falling into indebtedness.

Ecuadorian Government Studies, indicated that the 41% of the financial system customers who have accepted a loan, have trouble paying their debts.

Therefore it ordered the Board to have tighter control at the time of granting credits by informing people in a didactic and detailed nature about the credit terms.

Customers at the time of getting a loan shall be provided by the bank, four fields of basic information:

1.     Policies and mechanisms implemented by the entity to make the extrajudicial collection management.

2.     The time from which initiated the extrajudicial collection management.

3.     The internal departments or external entities authorized by the entity to make the collection managements.

4.     The channels which the debtor can use to make their payments.

(MZ)