The document provides an overview of the Ecuadorian financial system. It describes that the financial system is composed of private and public financial institutions, including banks, finance companies, cooperatives, mutual funds, and insurance companies. It notes that the financial system enables management of individual savings and development of economic activity through financial intermediaries. The document also outlines some key products and services of the Ecuadorian financial system, such as credit options, checking and savings accounts, and electronic banking services. It concludes by defining risk ratings scales that are used to assess the capacity of financial institutions to meet obligations.

1. ECUADORIAN
FINANCIAL SYSTEM
LADY PÉREZ VENTURA
STEVEEN SÁNCHEZ SÁNCHEZ
INTERNATIONAL FINANCE “A”

2. What is a Financial System?
Set of institutions that aims to manage the savings of
individuals.
This management of resources enables the development of
economic activity.
Financial intermediaries are responsable.

3. How the Ecuadorian Financial System is
composed?
Private financial institutions
(banks, finance companies,
cooperatives and mutuals)
Public Financial Institutions
Financial services institutions
Insurance companies
Auxiliary companies in the
financial system.
Entities under the control of
the Superintendency of Banks
Ecuadorian
Financial System

4. Importance of Financial System
Credit deposits
from savers
Bank Credits Consumption
TRUST
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5. Rights and Guarantees of the Financial
System User
Financial Education
Information of financial products and services
Choose rates, expenses and existing benefits
Access to financial products and services
Financial products and services quality
Access information and documentation
Protection
Claim

6. Laws and Regulations Related to the Protection
and Education of the Financial User
•Law on Credit Information Bureaus Law
•State Modernization Law
•Consumer Defense Organic Law
•Transparency and Access to Public Information Organic Law
•General Rules for the Implementation of the General Law on Financial System
Institutions
•Regulations to the General Law on Financial System Institutions

7. Products of Ecuadorian Financial System
•Short or medium term Loan. It is granted for money freely available. Ex: Purchase of
appliances, payment of a dental treatmentConsumption credit
•To satisfy cash needs of companies of any sizeTrade Credit
•Also known as mortgage lending, any credit used for purchase of a home.Housing Credit
•Credit to finance small-scale activities: production, marketing and services, whose
main source of repayment is the product of sales or revenue from those activities.Micro Credit
•The bank is obliged to fulfill payment orders from his client to the extent of the
amounts of money they have deposited in it or the credit has been stipulated.Checking Accounts
•Used for money management and originally is not associated with any creditSavings Accounts

8. Services of Ecuadorian Financial System
Online Banking- Using the Internet, customers can make different transactions.
Telephone Banking - Transactions are performed by phone
ATMs - An electronic device that enables customers of a financial institution to perform financial transactions without
the need for a human cashier.
Checks - Document by which a person orders the bank to pay a certain amount of money to another person.
Cash - Dollars( bills and coins) is the only legal mean of payment inn Ecuador
Debit card - Card used to access to funds in an agile way of current accounts and savings accounts holder.
Mobile Banking - Services provided by the institutions of the financial system to customers through mobile devices
Electronic Channels - All different ways, through which customers or users may transact with the institutions of the
financial system, using electronic or technological elements or devices
Smart Card - Card with an integrated circuit (chip) that allow the execution of certain logic programmed, has memory
and microprocessors and is able to provide security, particularly regarding the confidentiality of information from
memory.

9. What is risk rating?
A risk rating is an opinion issued by a qualified company, about the capacity of a financial
institution to meet its obligations to customers on the agreed terms and deadlines.
To this end, the rating agencies have updated information on the institution, the type of sector
that offers its products and the overall economy.
In the categories you can assign the (+) or (-) to indicate their relative position within the
respective category.

10. Definition of each scale
AAA.- The situation of the financial institution is very strong and
has an outstanding record of profitability.
AA.- The institution is very solid financially. Its overall risk profile,
while low, is not as favorable as that of the institutions that are in
the highest rating category
A. The institution is strong, has a solid financial record and is well
received in their natural money markets. There may be some
weaknesses.
BBB.- clearly this is considered to have good credit institution.
Although some minor obstacles are obvious.

11. Definition of each scale
BB.- The institution has a good credit in the market without serious
shortcomings.
B. Although this scale is still considered acceptable credit, the
institution has some significant shortcomings.
C. Financial figures suggest the institution obvious shortcomings,
most likely related to asset quality and / or poor structuring of the
balance.
D. The institution has significant deficiencies that are likely include
funding difficulties or liquidity.
E. serious problems, there is doubt about whether it can remain
viable without some form of outside help, or otherwise.

12. References
Superintendencia de Bancos y Seguros. Reviewed May 28th 2015, from
http://portaldelusuario.sbs.gob.ec/contenido.php?id_contenido=23