The economic slowdown was felt in private banking in 2015

The private banking system closed 2015 with a decrease in deposits, which led to favor liquidity and lend less money than in the previous two years. This in turn had a direct effect on bank profits.

Savings deposits (demand) fell by 13.8% between 2014 and 2015, passing from USD 19,733 million to USD 17,011 million. The decline in deposits caused a fall in the placement of loans by 4.47%, in relation to 2014. The loan portfolio totaled, in 2014, USD 19 651 million and by 2015 it dropped to 18,773 million.

For former Economy Minister Mauricio Pozo, the financial sector is a barometer of economic activity and reflects much of the liquidity of an economy. “If deposits decreased financial institutions will not be able to lend the same rate of past years …”.

Source: http://www.elcomercio.com/datos/economia-bancos-ecuador-depositos-creditos.html