The IMF saw 2016 out by reviewing the banking financial system and, in the face of stress testing, it concluded that the delinquency in Ecuadorian banks has deteriorated.
While private banks maintain rational overall indicators (4.34%), the IMF goes one step further and delves into the performance of each bank. I found, as well as the Superintendency of Banks that there are banks with too high rates of an unproductive portfolio (the one that goes into default because the customer does not pay).
The most complicated situation occurs in small banks. The average rises to 10.28% when the healthy thing is not to exceed five. In that group, some figures reach a 14% (D-Miro), a 16.50% (Bank of the Coast) and a 21.94% (Banco Capital).
But do not be alarmed so fast. These high indexes, which speak of many clients that do not fulfill their credit obligations leaving a gap in the banks’ balance sheets, have a dual endorsement. Besides an explanation.
The reason for Banco Capital’s case is that its type of loans has very short payment terms, from 48 to 60 months and, in those cases, the law provides that, after a 15 days delay, the unpaid quota must be considered as unpaid. But, according to the IMF, in fact, that does not become an unproductive portfolio but temporary delays that, without taking the due quotas into consideration, would add only 2.27% of the total portfolio.